We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
Britain's insurance industry is set for a shake-up that could dramatically alter the way businesses insure vehicles.
The new 'pay-how-you-drive' policy takes its lead from the innovative pay-as-you-go schemes that have already been introduced by Norwich Union.
Like its forerunner, it harnesses 'black box' technology, but unlike pay-as-you-go, the new policy is based around your drivers' behaviour rather than just hours behind the wheel.
Insurance pundits predict this crucial difference could shape the industry's future. The new scheme has already won backing from insurance giants Zurich and Royal & SunAlliance.
Instead of measuring just speed and when a vehicle is driven, retrofitted sensors pay specific attention to rapid acceleration, harsh braking, overall mileage and the number of hours driven between breaks.
The specialist broker behind the scheme, Lloyd Latchford, will offer discounts on uptake and substantial rebates (up to 15%) following positive changes in driver behaviour.
On an average premium this could be worth over £100 per driver per year.
Lloyd Latchford commercial boss Tim Hutton explained how altering LCV driver behaviour will help.
"Many van drivers are penalised by the 'white van man' image, but most drivers don't spend their time driving 100mph in the fast lane and drive responsibly. This technology will show this is the case."
Smaller businesses will also reap the rewards. Hutton continued: "SMEs will benefit most from pay-how-you-drive. They will have wanted to invest in telematics but prevented in doing so by the cost.
"Following good driver behaviour, the costs of installation will be recovered in a year and allow the firms to better manage its health and safety obligations as well as comply HSE working hours guidelines."
Visit www.phyd.co.uk for more info.
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
