A ’pay-as-you-drive’ insurance scheme for small truck fleets could lower insurance premiums by 25%, the developers have claimed.
Produced by insurance and risk management intermediary Towergate Insurance, the Azudrive product uses a client’s standard insurance premium to derive a rate per kilometre, which is then multiplied by the monthly distance travelled.
Towergate Insurance Telford managing director Larry Smith told MRW: “When we look at a vehicle, we look at the weight, what it’s doing, where it’s garaged. We also look at the driver, his age, his driving ability, his accident ratio. What we don’t do is differentiate on the amount that that vehicle drives. Azudrive will introduce significant savings for lower than average distance travelled.”
The Azudrive system will use the digital tachograph installed as standard in all HGVs to record the distance each vehicle travels and when the vehicle is working. Such data must already be downloaded every 56 days by law.
Smith said: “If an average UK haulier travels about 80,000km a year and if they’re travelling about half of that, we estimate they could save 25% on their insurance premium. It is a way of changing the way commercial vehicle insurance is written in this country.”
Currently the Azudrive system is aimed at the 80% of hauliers that have fleets of up to five vehicles, which includes waste management and recycling firms.
Smith said: “A lot of people in the waste and recycling industry are interested. One of our clients manages dustbin lorries and they’re so excited.”
Azudrive launches on 4 January 2011.