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Insurer launches per-mile cover Insurer launches per-mile cover
(about 8 hours later)
A pay-as-you-drive car insurance policy is being rolled out by Norwich Union.A pay-as-you-drive car insurance policy is being rolled out by Norwich Union.
The firm has run a pilot scheme with 5,000 drivers who were fitted with in-car devices to monitor when, how often and on which roads they drove.The firm has run a pilot scheme with 5,000 drivers who were fitted with in-car devices to monitor when, how often and on which roads they drove.
The company will offer policies for motorists with a sliding scale of charges in two different age groups.The company will offer policies for motorists with a sliding scale of charges in two different age groups.
Charges for drivers aged 24 to 65 go as low as 1p a mile for off-peak motorway driving while under-23s will be charged up to £1 a mile when driving at night.Charges for drivers aged 24 to 65 go as low as 1p a mile for off-peak motorway driving while under-23s will be charged up to £1 a mile when driving at night.
The company has said the latter charge will discourage young drivers from taking to the road between 11pm and 6am, which is seen a high-risk time for accidents involving inexperienced motorists.The company has said the latter charge will discourage young drivers from taking to the road between 11pm and 6am, which is seen a high-risk time for accidents involving inexperienced motorists.
Low-mileage reward
Data collected from 'black box' style GPS devices installed by Norwich Union will be used to work out how much drivers need to pay on a monthly basis.
HOW IT WORKS A "black box" style device is fitted to the carIt uses Global Positioning Satellite (GPS) technology to record the journeys of the carThis information is then transmitted securely to Norwich Union via a mobile phone network
The time of the day, type of road and mileage of the drive is taken into consideration when working out the monthly charge to customer.
Norwich Union's Iain Napier said the scheme had the potential to reward low-mileage drivers with cheaper premiums.Norwich Union's Iain Napier said the scheme had the potential to reward low-mileage drivers with cheaper premiums.
"The launch of pay-as-you-drive insurance will give motorists access to insurance that is specifically tailored to them and their driving habits," he said."The launch of pay-as-you-drive insurance will give motorists access to insurance that is specifically tailored to them and their driving habits," he said.