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Pay-as-you-drive scheme to slash insurance rates

2nd December 2010
Page 8
Page 8, 2nd December 2010 — Pay-as-you-drive scheme to slash insurance rates
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HAULIERS WILL be able to cut insurance bills by 25% using a -revolutionary" pay-as-you-drive scheme, according to insurer Towergate Insurance.

It has launched a new package called Azudrive, which allows drivers to only pay for the miles they cover.

The scheme has been piloted for four months.

Larry Smith, MD at Towergate, says: "This is a revolutionary product and could cut operators' bills by a quarter. We don't consider it fair that a haulier whose truck travels 40,000km annually, pays the same as a logistics firm that covers treble that amount."

Removal firms, skip operators and construction hauliers that frequently have low-mileage operations are expected to benefit from the new method of payment.

A spokesman for the Freight Transport Association adds: "The pay-as-you-use nature of the Azudrive service will benefit those who may not have their vehicles in use 24/7 It is an exciting development, especially in an environment where cost control is at the forefront of most daily agendas."