What Is Pay-as-you-drive?

By Author: Marcus Stalder
Total Articles: 491
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It's always interesting to watch how people react to science. Because more people now believe in the Bible as literal truth, most of biology as applied to evolution is rejected, as are those parts of astronomy that deny the Creation. Then, under the influence of a range of industries that would be required to change, we've all been told to reject the science underlying climate change. As a side issue, we're also not supposed to believe in peak oil. That's the idea the oil is going to run out sometime soon if we keep on burning it at the current rate. So there's no pressure for us to adopt green technologies to save our resources. Except there's one organization that has decided science is wonderful. Meet the insurance industry.

Insurance companies make their money by relying on the scientific analysis of information about how often we suffer loss and damage. They collect every possible scrap of evidence and use the very latest computers to work out the probability there will be hail and thunder sufficient to damage our homes, plagues of boils to require claims under our health plans, and so on. As a result, insurers are ...
... now refusing cover for many extreme weather events like flooding and violent storms. Even though we might want to deny the changes in weather patterns, the insurers recognize they will lose money if they continue offering general coverage.

So, by accident, insurers are environmentally friendly when it comes to insuring our vehicles. One of the latest trends confirming this is the roll-out of pay-as-you-drive (PAYD) policies. This is a very simple approach. All the drivers who prove they have a low mileage and drive safely can pay a reduced premium rate by the mile. Why has this not become an industry standard? The answer lies in the number of people prepared to lie about their mileage. Sadly, there are too many dishonest people around, so the insurers have been forced to wait for technology to catch up. Now many new vehicles are delivered with on-board computers that measure the distance we travel and monitor the performance of the vehicle. Better still, there are GPS transmitters fitted as standard to help us navigate and find stolen vehicles. If your make and model has yet to fit this technology, it's cheap and easy to manufacture a black box you can just plug in. Now the insurers can have a record of all the journeys we make.

The lowest rates will go to those who only drive a few miles a week at off-peak times. With the right technology, the insurers can also monitor how well we drive, recording how quickly we accelerate or violently we brake. So if you're retired, a homemaker, unemployed, or work from home you may well qualify for the lowest rates so long as you're prepared to sacrifice some of your privacy. Which is more important? The lowest possible auto insurance quotes or protecting information about when and where you drive? Insurance should be all about matching the premium to the safety record of the driver. Now that auto insurance rates can be personalized, do you want the discount and a financial encouragement to green driving habits?

If professional writers like Marcus Stalder really help you learn more about things going on in the world, http://www.searchinsurers.net/pay-as-you-drive.html will definitely give you enough food for thought on many interesting topics.