In the face of rising auto insurance premiums, insurance companies have been responding with potentially cheaper, pay-as-you-drive plans that, for billing purposes, track when, how, how much and where drivers use their vehicles instead of basing rates on statistics and past trends, The Detroit News reports. The practice isn't yet mainstream, but the National Association of Insurance Commissioners predicts 20 percent of insurance plans will be pay-as-you-go in five years; right now they account f
Pay As You Go
Currently, the UK has one of the most expensive car taxation systems in the world. Besides VAT (sales tax) at time of purchase, drivers in Britain must pay fuel taxes and a road tax (Vehicle Excise Duty) a corporate tax (for fleets), and sometimes a Congestion Charge, as in London. Manchester is about to vote on a congestion tax as well.