Back to the future as Aviva returns to PAYD policies

Aviva is making a return to pay-as-you-drive (PAYD), in partnership with Towergate Risk Solutions.

Towergate and Aviva will launch Azudrive next month, which will charge haulage companies on a mileage basis.

The insurer quit the PAYD personal lines market two years ago, blaming the high cost of technology required.

Aviva said that Azudrive avoids this problem by using the hauliers’ own digital tachographs, which are routinely installed as part of the haulage business.

Towergate Risks Solutions managing director Larry Smith said hauliers will only pay for insurance when a vehicle is moving.

Local drivers will pay less, which “could be the difference between a haulier staying in business or not”, Smith said.

Part of the premium will be paid upfront, with the rest on a PAYD basis.

Smith said the average haulier with a 7.5-tonne truck could save £750 on a £3,000 annual premium.

Coverage will be available initially to businesses with fewer than six vehicles weighing more than 7.5 tonnes but running fewer than 45,000 miles a year.

Towergate plans to roll out coverage to fleet and white vans in early-to-mid 2011.

Digital tachographs track when and where a truck is used, and for how long.

Data can be sent automatically to insurers, meaning premiums are only calculated when the haulier is using the truck.

Smith said that if this type of insurance takes off, it could change the way the haulage market is rated in the UK.