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Pay as you go car insurance......

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Minky_monkey
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Joined: 01 Aug 2004
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PostPosted: 18:24 - 12 Jan 2005    Post subject: Pay as you go car insurance...... Reply with quote

It's here!

https://news.bbc.co.uk/1/hi/business/4167347.stm

18-21 year olds, I wonder what else it records though.
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mchaggis
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PostPosted: 18:34 - 12 Jan 2005    Post subject: Reply with quote

BBC wrote:


The scheme is open to 18 to 21-year-olds and, as with mobile phone tariffs, drivers will pay more during "peak" times, between 11pm and 6am.

There is a one-off fee of £199 for the box, but Norwich says that this amounts to less than savings made on premiums.

The policy works in a similar way to mobile phone tariffs.

Users pay a monthly fee for cover against fire and theft, and also a personalised rate for off-peak travel, which starts at 6p a mile.

Travel during peak times costs a flat rate £1 per mile.

The first 100 off-peak miles each month under the policy, known officially as "Pay-as-you-drive" will be free, Norwich Union said.

The insurer calculates that younger drivers could save up to 30% a year off the cost of their premiums.


What happens with people on night shifts, driving during "peak times"? I guess it is purely supposed to discourage people from driving at night, so the insurance companies can save money from supposedly fewer crashes or something? £1 a mile? You certainly wouldn't want to drive at night if that's how much they'd be charging...

No doubt, in the fullness of time they'll become standard equipment on new vehicles, and you'll be dealt speeding tickets automatically via satellite connections. Rolling Eyes
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NickD
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PostPosted: 18:40 - 12 Jan 2005    Post subject: Reply with quote

mchaggis wrote:
No doubt, in the fullness of time they'll become standard equipment on new vehicles, and you'll be dealt speeding tickets automatically via satellite connections. Rolling Eyes


Yup. And by encouraging people to have them installed voluntarily, on the promise of cheaper insurance (which it probably wont be for long), half the work is already done without the authorities having to lift a finger. I wonder if the scheme is government subsidised on the sly?
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Adam_P
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PostPosted: 18:41 - 12 Jan 2005    Post subject: Reply with quote

A pound a mile?! Christ, that'll turn out to be expensive, surely?

What if you're a student and you have to travel from Uni to home, and home happens to be a couple of hundred miles down the road?

Not exactly cost effective, is it?

I could see someone at age 18-19 who goes to cruises in his Max Power'd Saxo paying a fortune over the course of a year! (Although, if you're willing to pay thousands to modify a Saxo, then it probably won't matter very much!)
How many miles will the average teenager do a year?
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mrchips
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PostPosted: 18:54 - 12 Jan 2005    Post subject: Reply with quote

I do 8 miles to and from work every day plus going to mates houses etc so say I do 100 miles a week. Wouldn't like to be paying anywhere close to £100 a week. I'm sure there would be a way to disconnect the unit and only pay for maybe 30 miles a week.
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Ste
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Joined: 01 Sep 2002
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PostPosted: 19:00 - 12 Jan 2005    Post subject: Reply with quote

Bear in mind it only costs £1 per mile between 11pm and 6am, so it's quite unlikely that all your miles will be in those times.

You could disconnect it I'm sure, you'd be just slightly fucked if you were involved in a crash though. Confused
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TomC
Trackday Trickster



Joined: 17 Dec 2004
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PostPosted: 19:05 - 12 Jan 2005    Post subject: Reply with quote

"errr it must have fallen off in the crash..." Rolling Eyes

Can just see it now.
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Annabella
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Joined: 03 Feb 2002
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PostPosted: 19:07 - 12 Jan 2005    Post subject: Reply with quote

Adam_P wrote:
What if you're a student and you have to travel from Uni to home, and home happens to be a couple of hundred miles down the road?


My thought exactly, on the number of miles I travel per year (even when I was still at school - I was doing around 40 miles a day) it would not be a cost effective method.

It would only be ideal for someone who only drives infrequently (like on a Sunday) and often in this case it is using a parent's car possibly... How would the insurance company differentiate between drivers?
Another thought - it's a good method for insurance companies to keep check on those 'limited mileage' policies for classic cars/bikes etc.
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Ste
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PostPosted: 19:09 - 12 Jan 2005    Post subject: Reply with quote

Annabella wrote:
it's a good method for insurance companies to keep check on those 'limited mileage' policies for classic cars/bikes etc.

Expect it'd also keep a check on lots of other things, if it logs your distance travelled and times then they've got a record of your speeds travelled very easily. Confused Confused
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NickD
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PostPosted: 19:13 - 12 Jan 2005    Post subject: Reply with quote

This system, if it becomes the norm, would assist the governments requirement to reduce vehicles on the road. Making people weigh up the necessity of a given journey, against cost.

Hmmm? Access to private transport according to socio- economic status?
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instigator
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PostPosted: 19:19 - 12 Jan 2005    Post subject: Reply with quote

I think its a superb idea - if you can simply unplug the wires so it doesn't read any activity or where the car is Wink Cheap as chips Wink

Just blame it on an electrical fault!!! Wink
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NickD
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PostPosted: 19:24 - 12 Jan 2005    Post subject: Reply with quote

instigator wrote:

Just blame it on an electrical fault!!! Wink


Just a guess, but they may have already thought of that. Rolling Eyes Laughing
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Irezumi aka Reuben
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PostPosted: 19:28 - 12 Jan 2005    Post subject: Reply with quote

With this possibly becoming a whole new system for the country and with ID card's (although there appear's to be a back down on those) will people such as myself who cause no-one any harm or problems suddenly become criminals and possibly face jail?

Seem's if this continues i'll have to work on my soap handling skill's so not to drop it Confused
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Kickstart
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PostPosted: 20:23 - 12 Jan 2005    Post subject: Reply with quote

Hi

Even at 6p a mile, do 10000 miles a year (probably quite a common amount) and it will cost you £600 insurance at the very least, plus the cost of the box and plus the monthly charge for fire / theft cover. Doesn't really seem appealing.

All the best

Keith
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Robin
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Joined: 12 Jul 2004
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PostPosted: 09:25 - 13 Jan 2005    Post subject: Reply with quote

Welcome to 1984, BIG BROTHER HERE WE COME!!

Anybody who 'voluntarily' has one of these fitted must be brain dead. They can then have their speed monitored (if you do more than 30mph on a 'ped then it must be derestricted=void insurance), it could be the first step towards EVSC, next thing you know you have an insurance company controling your bikes speed.

Also, if they are using GPS in theory they can track your every move, what does that mean to your civil liberties.

It also effectively removes any cover to ride another bike, as that bike would not be fitted with 'your' black box, and if you did lend your bike to a mate, would they be covered to ride it, and therefore liable to pay for the miles that they cover.

I could go on, but my blood pressure is high enough already.

I think that this suggestion might be another smoke screen that will be greatly rejected and never get off the ground, BUT.................






......it will make a watered down version of it appear more acceptable when it is introduced in a couple of years.

Watch this space!
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