Norwich Union orders more pay as you drive car insurance devices

Sun, 07 May 2006

35,000 more 'black boxes' have been ordered by UK insurance firm Norwich Union after test schemes indicated that drivers could benefit from metered car insurance .

Since February 2002, Norwich Union has been trialling its "pay as you drive" car insurance programme - using 'black box' style devices which record the time, distance, and location of a vehicle's journeys. Monthly insurance could then be calculated with reference to the actual car usage in that period.

Driving behaviour and vehicle usage statistics allowed the company to better assess risk to divers throughout the period under scrutiny. Simon Machell, chief executive of Norwich Union Insurance, said that "learnings from our pilot ... will shape any future 'pay as you drive' insurance products". Over 10 million journeys have been recorded by the pilot scheme - results indicate drivers tending to minimise their insurance premiums by opting to walk or cycle for short journeys.

The insurer now aims to increase the volume of 'black box' research in its pilot programme and has purchased units from UK-based Trafficmaster Plc.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.



Simplyhealth Dental Plan

Affordable cover from only £7.50 per month. Join now and get first month FREE

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.

Save money on your mortgageSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.