Pay-as-you-drive insurance arrives for hauliers 30 November 2010

Towergate Insurance has announced a pay-as-you-drive insurance policy, which it believes could save some commercial fleets as much as 25% on their annual premiums – and in some cases 60%.

Azudrive calculates an individual rate per kilometre, based on a standard insurance premium, and then uses digital tachograph data to work out how far a driver or vehicle has travelled in each month.

"What [the industry] doesn't do, when we look at insurance premiums, is take into account how far a vehicle travels. Is that fair? We don't think so," states Larry Smith, managing director at Towergate.

Smith believes there is good reason for operators' drivers that travel fewer miles to pay less in insurance, and is looking to pass on savings that, he says, might go some way to countering the rising fuel costs that operators must bear.

Towergate, which provides cover to members of the FTA (Freight Transort Association) and RHA (Road Haulage Association), is targeting those hauliers running, for example, fleets of tippers and concrete mixers, as well as skip delivery and removal firms.

"Phase one of the project will look at operators with between one and five vehicles on their fleets," continues Smith – because there are around 40,000 potential vehicles in that bracket alone.

Author
John Challen

Related Companies
Towergate Risk Solutions

This material is protected by MA Business copyright
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.