What do you think of this? Pay as you drive car insurance policies! Up to 5000 Norwich Union car policy holders are having their cars fitted with a "black box" recorder which tracks every mile you have travelled. The two-year pilot scheme could help cut premiums for occasional car users, but mean more expensive car insurance for high-mileage drivers.The box records real-time vehicle usage and sends the data to Norwich Union securely using mobile technology. A monthly insurance bill will then be sent to the policyholder based on an agreed insurance cost per mile.The cost per mile will be based on a number of factors - such as insurance History
, the age and sex of the policyholder as well as how the vehicle is being used. Norwich Union, the UK's largest car insurer, has exclusive rights to market the technology in UK and Europe.
As stated by Robert Ledger, programme director for Norwich Union, "Customers choosing "Pay As You Drive"™ insurance will benefit from individual premiums based on how often, when and where they actually used their cars. Motorists would receive a fairer deal as this initiative provides them with the opportunity to really be in the driving seat when it comes to controlling their premiums."