Pay-as-you-drive insurance policy could penalise families in rural areas
Families living in rural areas may be penalised by a new car insurance policy where premiums are based on where and when you drive.
The AA has launched a pay-as-you-drive insurance scheme which uses in-car ‘black box’ technology to monitor your driving behaviour behind the wheel.
Everyone starts off with 50 points and your score increases or decreases depending on factors including your speed, how sharply you turn corners, the type of roads you travel on and the time of day.
Winding road: Country drivers will have to work harder to keep a good score
Your monthly premium will fluctuate depending on how many points you lose or gain each month.
But
drivers living in areas where there are many winding roads — such as
the countryside — will have to work harder to keep a good score, as
insurers view these areas as more risky.
Campaign
group the Countryside Alliance says it is unfair to penalise people for
living in a rural area: ‘We see a benefit in keeping premiums down, but
we are also concerned that rural roads can be tricky to drive, so this
device should recognise and not penalise rural drivers unfairly.’
The
AA says the box will be of most help for young drivers, who have seen
insurance premiums jump by up to 90 per cent in just two years.
It claims the box could save you up to 850 on your policy if you keep a good score.
However, if you score badly, your premiums will rocket and the AA may recommend you have extra driving lessons.
An
AA spokesman concedes rural dwellers could pay more. He adds that if
the car is stolen or you have an accident, it will be easier to trace
the vehicle as the box is tracked by satellite.
Simon
Douglas, director of AA Insurance, says: ‘The box is likely to appeal
to inexperienced drivers as well as parents whose youngsters have their
first car. Parents know driving behaviour is being tracked by a system
that also provides crash, breakdown and theft alerts.’
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