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Pay-as-you-drive 'not dead', claims expert

Car Insurance News - Published: 18/06/2008
Pay-as-you-drive 'not dead', claims expert
The concept of pay-as-you-drive car insurance could be reborn in the future, an industry expert has claimed.

According to James Tanser, from Watson Wyatt's insurance and financial services practice, claims the move by certain companies to withdraw the pay-as-you-drive deals from the market does not spell the end for the idea, according to Post online.

"I wouldn't write off usage-based motor insurance entirely," he said, adding that car manufacturers are offering extra services such as automatically dialling the emergency services following an airbag deployment.

"Including car insurance in this type of offering may look like a small step, and so such developments may create an opportunity in the future to combine these technologies and relaunch the pay-as-you-drive insurance concept."

Mr Tanser added that companies from around the world have or are preparing to launch similar versions of the product.

Watson Wyatt claims to be the trusted business partner to the world's leading organisations on people and financial issues.
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