Pay per Mile Van Insurance UK

In this article we'd like to discuss the possible implications of pay per mile van insurance UK and it's effects on the transport industry of this country. Pay per mile van insurance is being touted as the way forward for insurance in the future because of the added benefit of only paying for what you use. There are already a number of pilot schemes running in the UK which have had some very positive feedback from it's users, however how many of these people had to drive for a living?

So what is pay per mile van insurance for the UK? Well to start with, your vehicle is fitted with a small GPS tracking device that will record every aspect of your journey including time, speed and road. Using this information, your UK van insurance company is then able to calculate a monthly bill in a similar fashion to your mobile phone. The question is how much will this new format cost the average person?

The problem is people who drive for a living could be crippled by this scheme because they have no choice but to be on the road, if something needs to be delivered or something needs fixing there isn't a way around it. The problem is that delivery and maintenance firms are simply going to have to pass on this extra cost to their customers which is why people shouldn't just sit there thinking that this issue doesn't affect them in any way, you'll pay more to have your shopping delivered and more for a plumber to come out to your house.

There is also an issue of privacy, is it really necessary for the UK van insurance companies to know where your car is at all times. Many privacy supporters feel that this move could infringe our rights and potentially be abused by some companies, would you want your driving habits sold alongside your personal details? If you think it doesn't matter you'd be wrong, it's perfectly possible to cross reference your location with postcodes and potentially find where you went. Nipped out to Tescos at 8pm to get some milk, they can figure out you went to tescos and sell that information, go to the cinema 3 times a month, you guessed it, they can figure that out as well if you park in the cinema car park and sell marketing data to companies.

The question also arises whether you are covered if you are speeding. The van insurance company will be able to prove that you were exceeding the speed limit for a given road at the time of the accident and may not pay out on your claim if they believe you were not driving with due care and attention. The police will also be able to request this data to figure out who caused an accident. Do we really want to move into a big brother state?

So are there actually any benefits to the consumer if they are forced to take this method of van insurance? Well there are a few significant benefits, if all cars are fitted with GPS trackers, it should make it easier for joyriders to steal vehicles and not be found by police. As soon as you discover your car has been stolen you can report it stolen and the police should be able to track it with special equipment. However, this is not the silver bullet that a lot of people will be hoping for, it won't take long before some of the more competent thieves are able to discover ways to disable these transmitters.

The likelihood of van drivers being better off under this scheme does not look good which means that the cost of some services and the transportation of goods in this country is only going to rise, we just hope that people remember that this is the reason that prices have to increase. If you want a quote on cheap van insurance, please call one of our experienced underwriters and they will be able to advise you.