Car insurance future 'is PAYD'

The future of car insurance in the UK is pay-as-you-drive (PAYD), an expert has argued.

Steve Foulsham, technical services manager at the British Insurance Brokers' Association, said that PAYD could be beneficial for certain sections of the driving community, for example younger drivers, who may be able to reduce their premiums by agreeing not to use their vehicle at certain times of the day.

He commented: "[It's] something for the future. It's just another alternative for some people ... It might have an appeal for people that don't use their vehicles very much either."

Meanwhile, Hugh Bladon, a spokesperson for the Association of British Drivers, recently argued that the introduction of electric cars into the UK will be "just a fad".

He argued that as the energy to power these vehicles has to be created in power plants, which themselves are massive producers of CO2, the green creditability of electric vehicles must be called into question.

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