First ‘pay-as-you-drive’ haulage insurance product set to revolutionise industry from Towergate Insurance

Towergate Insurance, insurance brokers to the Freight Transport Association (FTA) and the Road Haulage Association (RHA), are proud to announce the launch of Azudrive, a pay-as-you-drive insurance product for the haulage industry.

The product

Azudrive calculates an individual rate per kilometre for the customer from their standard insurance premium, and multiplies this by the number of kilometres travelled every month.

The product will utilise digital tachographs, now fitted as standard in all heavy goods vehicles since 2006, to record the distance travelled.

Quite simply this means that drivers pay only for the distance they drive, revolutionising haulage insurance.

The market

Over the past decade the number of goods vehicle operators in the UK has fallen from 111,000 to 95,000 in 2009 (Department for Transport) – almost a 15% reduction. High running costs and low volumes of regular work have forced many of these operators out of business.

This situation has highlighted a flaw in the way the UK haulage insurance industry is structured and has prompted the question, why should two identical operators be paying the same insurance premium when one is doing 40,000 kilometres per year whilst the other is doing 80,000?

Opinion

Azudrive has been endorsed by the FTA who commented today: "We welcome the opportunity to help our members control operating costs through reducing insurance premiums. The new 'pay as you use' nature of the Azudrive service will benefit many operators especially those who may not have their vehicles in use 24/7. It is an exciting development especially in an environment where cost control is at the forefront of most daily agendas".

Amanda Blanc, Deputy Group CEO of Towergate Insurance, describes this as an "undeniably fairer method of insurance premium calculation". She continues "whether you’re a goods vehicle operator doing local haulage and struggling to find regular work, or generally doing below average mileage, Azudrive could potentially save operators up to 25% on their insurance premium."


Media Contacts

Russell O'Connor

Group Communications Manager

Towergate

Mobile: 07760 282586

Email: Russell.o'connor@towergate.co.uk