Why Getting Motor Insurance Might Become Cheaper in the Years to Come
New plans have been laid out for the use of high tech tracking devices in motor vehicles. The plan is believed by many to have been hatched by the government in conjunction with the insurance companies. The plan, when and if fully implemented will offer governments an opportunity of tracking vehicles using already existing technology. It is thought that fitting motor vehicles with a GPS tracking device, already used in some cars for theft prevention and recovery, will enable the government quickly identify un insured motorists in real time. Drivers and operators of uninsured motor vehicles will be rapidly identified by the authorities. Similarly, police the government in the United kingdom intends to bring in a form of road use tax. In the plans made public by the authorities a type of road levy based on the road use will be instituted. Drivers will be charged based on the number of miles clocked in a year and the road used during journey. Heavy road users will incur high charges according to the scheme while light user will rip the most benefit. From a law enforcement perspective, the authorities will also be able to track all vehicles on its road at any given time.
Insurance companies on the other hand, will be able to offer an objective premium tailored to the needs and use of each driver. The present formulae, though going to great lengths to provide objective calculations for each individual cover, pales in comparison to what can this system can do. Drivers will be able to pay just for the number of miles traveled and based on the level of risk taken, time of day, weather conditions during travel etc.
While it will come as a welcome relief to governments and insurance companies, it has brought about a lot of criticism from civil liberty groups and individuals, who are bemoaning the level of intrusion into privates resulting from the increased use of surveillance technology.
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