Congestion incentives could lower car insurance

Posted :07-10-2005

Motorists in Birmingham may soon be offered financial incentives to stop using their cars at peak times, in a move that could see their insurance premiums fall.

Birmingham's professional services sector has suggested different ideas for road pricing schemes, as alternatives to London's congestion charges.

Simon Murphy, chief executive of Birmingham Forward, which represents 250 firms in the West Midlands, said there were many options open to the government to cope with the number of cars on the road at peak times – although a London style congestion charge would not be tolerated.

Speaking to the Birmingham Post, Mr Murphy said: "What we need for Birmingham and the West Midlands is a demand management solution.

"What we will have is a system based on the interests and needs of the West Midlands conurbation and managing demand at peak times on the main roads. It will be something very different."

Mr Murphy said the government has asked regions to come forward with innovative solutions to over crowding on the roads – pointing out that drivers around the country use the roads at different times of the day.

"You have a large professional services centre in Birmingham and a large manufacturing base in the Black Country where the usage of roads is very different," he said.

He added that incentives for those who avoid using their cars in peak time could result in lower and cheaper car insurance premiums, as there would be less likelihood of accidents.

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