'Pay-as-you-drive' regulations demonstrate an evolving insurance industry

In many nations, insurance premiums for owner-drivers of red-colored cars—particularly those with high speeds

—tend to be more expensive since they signal a risk-taking mindset.

The history of speeding fines and other traffic law offences also contributes

to the creation of the profile used to calculate insurance rates.

The idea is that a responsible owner-driver should actually pay less for insurance than reckless or habitual offenders.

Motor insurance in India is undergoing a considerable transition as a result of the most recent Irdai laws.