The Norwich Union insurance company is celebrating the success of its pay-as-you-drive insurance policy, which offers motorists the
chance to pay a fixed rate for every mile they drive.
A small box, about the size of a DVD player, is fitted into the car and
uses GPS to track the journeys made before sending them, using GSM
technology, to the Norwich Union headquarters to be added to the bill.
Erik Nelson, general insurance media relations manager for Norwich
Union, said: "It’s a great policy and it rewards you for driving less,
which has great environmental benefits.
"The young driver policy is for driver aged between 18 and 23 years old
and Pay As You Drive for all drivers is available for 24 to 75 year
olds. This policy takes into account the type of road you are using. The people who will benefit on this policy are people who drive less than 8,000 miles a year."
Young drivers, using the tracking system, save most money by driving
less at night. "We know that young drivers account for 45 per cent of
road fatalities between 11pm and 6am and that they are ten times more
likely to have an accident at night. Those are some of the reasons that
premiums for young drivers are so high," Mr Nelson explained.
In America, Florida has a curfew to prevent teenage motorists using the
roads after 11pm, and in Autumn 2007 there were calls from the AA and
RAC to try to prevent UK teenagers being allowed to transport other
teenage passengers – which is aimed at stopping newly-qualified
youngsters "showing off".