Road pricing for car insurance customers many years away

Tue, 06 Jul 2010

Car insurance customers have been told not to expect any introduction of widespread road pricing in the near future.

The RAC Foundation recently published a report that looked into the issue, arguing that it is necessary to improve the state of the road network and congestion and to meet carbon emissions targets.

However, Neil Greig, director of policy and research at the Institute of Advanced Motorists, said that changes were unlikely any time soon as the government would lose revenue form the existing forms of taxation .

He added: "People could see some compensation in switching to a pay as you go system. Fuel at the pump could be cheaper and they wouldn't be paying for a tax disc.

"It requires such a wholesale change in government policy though that I think it is still many, many years away. There are all sorts of practical difficulties and one off costs."

Meanwhile, research by Datamonitor recently predicted that the share of 'green' vehicles in the European Union will increase from 2.3 per cent in 2009 to 3.2 per cent in 2015.
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