‘Pay as you drive’ could be future of insurance for car leasing hire

JonathanJune 16, 2011

People who make use of car leasing hire services but do not cover as many miles as the average motorist could find ‘pay as you drive’ policies to be a good option.

These charge insurance premiums based on how far the car travels, using telematics systems to keep track.

While they are not yet commonplace, Frost & Sullivan reports that the adoption of similar approaches to vehicle insurance in California could signal the rise of the US market.

The analyst expects to see 1.1 million pay as you drive motorists on the US’s roads by 2017.

In the UK, all car leasing hire customers could face a pay as you drive system in the years to come as authorities look to ways to manage congetion.

A report last summer from the RAC Foundation deemed a switch to per-mile charging “inevitable” in the years to 2025, as traffic is expected to rise by a third in the period between now and then.

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