Laurence Payne wrote:

Doesn't Australia do this?

I think that was the country, yes. Might have been NZ, as another
poster suggested.

The insurance companies would fight it tooth-and-nail of course. And
the chattering classes would object to subsidising high-risk drivers.
Though I suspect the economies from the simplicity of the system would
more than compensate.

Indeed. No complexity, no uninsured drivers, no issues. The only
thing that'd need to be actively tracked, were it on the price of
petrol, would be the MOT.

The insurance companies could, of course, still compete over the
provision of fully comprehensive insurance over and above the basic,
which I suspect most people would still choose to take to protect their
investment. I certainly would.

Neil