The cloud of city toll charges has a silver lining for motorists

The road building policies of the 1980s promised to free motorists from congestion and make getting around easier for all. Twenty years later, congestion is at its highest level ever with inner city areas such London literally swamped by motorists on a daily basis. Approximately 60% of Britain’s congestion occurs on and within the M25 motorway with Greater and Central London in a state of gridlock most of the day. Since the Government published its Integrated White Paper last summer, Mayor of London, Ken Livingstone has been pushing ahead with plans to introduce a £5 per day congestion charge for motorists driving in a toll zone covering an area eight miles wide in the centre of London. The toll charges will come in to place next month and will apply during the hours of 7am to 6.30pm Monday to Friday. As part of the Government’s ten-year transport plan, the charges aim to deter motorists from the vehicles and on to public transport with the money from the toll being ploughed in to improvements in the public transport system. Deputy Prime Minister John Prescott explains, “ These measures will provide an income to support major improvements in public transport and traffic management to combat traffic jams. They will help to tackle the problem and help to provide a solution.” If the Government’s toll scheme proves to be successful it could have knock on affects on the motor insurance industry. With anything between 20-30% of motorists complying with the Government’s aim and opting for public transport, premiums are likely to decrease. David Harlow of leading online insurance brokers, InsureYourMotor.com comments, “If drivers are doing fewer miles into the city and no longer driving on congested and hazardous roads their premiums may decrease. Having a significant percentage of cars off the road five days a week for the majority of the day should lead to a reduction in premium figures.”