One expert has recently stated that by paying as you go instead of on a yearly basis could result in cheaper car insurance overall.
Such a system could bring discount car insurance to drivers who are only on the road occasionally, says the RAC Foundation, and additionally could deter younger drivers from frequenting the country’s roads, which could lead to an improvement in road safety as well.
The RAC came up with the suggestion in response to the graduated driver licence scheme recently proposed by several other motoring groups, a scheme in which new drivers would only be permitted to drive during daylight hours, which could also lead to discount car insurance for younger drivers.
RAC’s head of research Elizabeth Box commented that such graduated licence schemes may indeed reduce the incidence rate of traffic collisions, but enforceability questions regarding the licensing may prevent the scheme from reaching full efficacy, especially in light of how tightly stretched the police service is currently. Ms Box instead proposed the alternative of promoting motor car insurance utilising a pay as you go model, which could incentivise traveling at less risky times of day.
Cardiff University honorary senior lecturer Dr Sarah Jones originally put the graduated licensing idea forward, something that has already been implemented in New Zealand, Canada, and the United States.
Dr Jones is of the belief that instituting a night-time driving ban on younger drivers would lead to an improvement of UK road safety standards.
She also believes that implementing the graduated licensing scheme could lead to up to 200 less driving fatalities in the UK annually in that a scheme in which new drivers could slowly build up their on-the-road experience without the risk of the more serious hazards inherent in driving at night would be quite beneficial in the long run for a country plagued with rising accident figures.