We have previously referred to the economic benefits of Pay As You Drive car insurance. The financial benefits of reduced car insurance premiums might be what would drive most of us towards changing our existing car insurance – but there are other more noble motivations as well – such as keeping the environment green!
This was discussed in more detail in a blog post titled “Pay As You Drive Car Insurance could protect the environment”. It now appears that there is a global push towards measures that could reduce driving and contribute towards commuting which is less hazardous to the environment.
A “truly radical” pay-as-you-drive scheme for Britain’s motorways should be introduced to help the country switch to a low-carbon economy, a senior Tory MP has said.
Tim Yeo, who chairs the Commons Energy and Climate Change Select Committee, called for drivers to be charged based on emissions and time of travel to promote green vehicle choices and cut peak time congestion.
The South Suffolk MP, who chaired the Commons Environmental Audit Committee during the last parliament, wrote a book called Green Gold: The Case For Raising Our Game On Climate Change. In this publication he puts forward a package of measures to accelerate the UK’s move to a low-carbon economy – which he argues would provide large financial rewards in the long run.
Amongst the most radical measures proposed to decarbonise the transport system are incentivising low emission vehicles, privatising the motorways and introducing road pricing.
“Since it could also pay for a cut in fuel duty, the upshot would be a cut in the cost of driving for drivers who make little use of motorways, a group which includes many rural residents for whom car ownership is a necessity, regardless of wealth.”
States in the US are also increasingly taking note of the advantages and pollution reductions afforded by PAYD. No fewer than 14 states are relying on PAYD as a strategy to combat global warming pollution, and expect PAYD alone to contribute on average 3% of their state’s total emissions reduction. In all cases, PAYD is projected to have either no cost or to result in net savings.
If we are serious about conservation and reducing pollution we might have to start at home! If we drive less we might not only enjoy the benefits of reduced risks to pollution and accident claims – but also the financial savings from Pay As You Drive car insurance policies!!