New Schemes set to Reduce Insurance Costs

Sunday, 1. February 2009

There appears to be a bit of a shake up in the way that cars are insured. Where companies allow drivers to use their own cars for company business it is being suggested that the companies now take out company policies that include the cars owned by the employees in order to ensure that all cars used for company business are adequately covered. There are also proposals to introduce pay as you drive policies which would benefit those who drive low miles per annum and also those that drive more at less dangerous times rather than more dangerous peak accident times. As GPS technology improves it will make it more feasible for such schemes to be introduced. This is in fact nothing new as Norwich Union had an operational scheme which was withdrawn last June but the new scheme, attached to latest technology, is set to reduce insurance costs with fairer charging. By Graham Hill