There is now a lot of awareness programmes regarding the environmental impacts of driving especially about the effects of carbon monoxide emissions and a wider audience is understanding the effects of careless driving down the roads. Nowadays, there are green drives to have fewer cars on the road which are more fuel efficient and more environmentally friendly.
Another reason as to why pay as you drive is getting more famous is that in the past people wanted to pay less when they drove less so as to save on their vehicle insurance costs. Today, though, it has come to the attention of environmentalists that pay as you drive is a better means of driving as it reduces gas emissions to the atmosphere and hence is better for the environment. But before going into environmental details, we will see how pay as you drive works.
The pay monthly car insurance is calculated on a cent per kilometre rate which is in turned based on some factors like age of the driver, driving history and the type of vehicle. There is a certain fixed fee that you must pay for every month and you are also given some kilometres to travel for free. Once you go beyond that fixed number of kilometres, you must pay for the extra distance covered. A tracker is installed in your vehicle by the insurance company so as to monitor the distance that you cover per month. The tracker can also be used to relocate your car if it is stolen which thus adds to the security of the vehicle.
The reason as to why environmentalists believe that pay as you drive is a better insurance coverage for cars is that it encourages drivers to drive less which then results in less carbon monoxide emissions into the atmosphere. When you know that you will be paying every time you drive, you will want to drive less to save on money or else go for public transport. Pay as you drive insurance is readily accepted by those concerned about the environment who would rather go for public transport then or use lift clubs. However, in many countries, even environmental conscious people have to pay for their insurance coverage on a monthly basis even though they are making the efforts to reduce gas emissions to the atmosphere as other people which may not look fair to them then. But if they are actually paying for the time that they are driving, it is a better deal for them.
As can be seen, there are many reasons as to why pay as you drive is a concept that is embraced by a lot of people. While it helps to protect the environment, it also causes those who drive less to save up on their insurance costs.