I have just read that the average cost of comprehensive insurance is now over £700 per year, whilst the number of drivers in urban areas of Britain without insurance cover of any kind is almost two in ten, or nearing a staggering 20% [img]smileys/smiley3.gif[/img].
I was wondering whether a viable solution to this problem, which will only worsen in years ahead, would be to add the cost of car insurance to the price of fuel in order that everyone who drives is automatically insured. I cannot think of a single government anywhere who has considered such a proposal, so I guess there must be something very wrong with it, although I am hard-pressed to think of why such a scheme could not work.
On the face of it, my insurance [£150 per year] @ 5000 miles per year = 3p per mile, whereas an 'average' driver [say £500 insurance @ 12,000 miles per year] = 4p per mile. So, if your average car does, say, 30 mpg, the additional cost per gallon would be approximately £1.20 per gallon. Therefore, the 12,000 mile per year driver [= 400 gallons] would pay a premium of £480 over the year, i.e., the same as the cost of the existing insurance.
The advantages of such a scheme would be that anyone who buys fuel would be automatically insured, no-one need take out individual insurance or pay for it up-front, and no more daft and pointless ads of the television [img]smileys/smiley32.gif[/img]. It is also a very 'green' proposal, as it encourages frugal driving. The only disadvantaged group, presumably, would be those who do a very high mileage, but pay low insurance premiums.
As I have said, I feel sure that there is a gaping hole of illogical nonsence [img]smileys/smiley5.gif[/img] somewhere in this notion, so I await enlightenment from the ether.
Edited by: romseyraver