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Pay As You Drive Insurance

You can now get pay as you drive insurance. This can be ideal for drivers who do low millage. You pay a premium as you would normally, but if you drive under a certain number of miles in a year you get a partial refund.

They insurance company calculate how many miles you have done by installing a anti theft tracking system into your car. They can then monitor the number of miles you do.

There have been concerns voiced in the USA regarding privacy issues as some insurance companies are using the anti theft tracking systems to not only calculate the number of miles that you do each year, but also your driving style, speeds that you travel at and the areas that you drive in.

This information can then be used by the insurance company to then modify your premium around their risk assessment of your driving style and areas that you commonly visit.

This could be considered to be an infringement on your privacy and therefore many feel that it is not ethical. Others say that as long as insurance companies are legislated properly then it should not be a problem.

The insurance company should be made to make it very clear to customers exactly what the vehicle tracking system will be used for and how it will affect their premiums both now and in the future.

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