Motorists are routinely driven to distraction by car insurance bills over which they have little control. A GPS based system aims to end all that, by introducing monthly pay-as-you-drive cover.
This is one business model by which private roads could operate and it is currently being rolled out in a pilot test by Norwich Union, an auto insurance company.
They have developed a computer system called telematics, which combines communication and information technologies like GPS to record a vehicles every movements. That data is then relayed to insurance firms via wireless technology similar to the kind found in cell phones.
Each month the insurance company bills the clients based upon a number of factors such as: type of car, roads used (Express Ways, Farm Roads, etc.), weather conditions, time of day, etc.
So in the end, insurance rates would change based upon how often, where and when people drive their cars.