Merchants first to benefit from 'per mile' cover
Published: 22 September, 2010
LONDON: Builders merchants could see a dramatic drop in their vehicle insurance premiums following the launch of a new 'per mile' policy.
Insurance broker Towergate has joined forces with insurance company Aviva to launch azudrive, designed to help companies that only make local trips.
The cover will initially be available to businesses with fewer than six vehicles weighing more than 7.5 tonnes but running less than around 70 000km a year, like builders merchants and garden centres. The scheme will then be rolled out further.
"You will only buy insurance when the vehicle is moving," Towergate Risk Solutions managing director Larry Smith told the Daily Telegraph. "Local drivers will pay less. If you have someone doing local haulage they will be paying 25% less, depending on the number of miles they do."
The insurers will use information from a vehicle's digital tachograph, which can accurately track when a truck is used, and for how long.
Part of the premium will be paid up front with the rest paid on a pay as you drive basis.