End of pay as you go car insurance bad for young drivers, expert claims

Wed, 18 Jun 2008

The demise of Norwich Union's pay as you go car insurance scheme is "a blow for younger drivers", one expert has claimed.

Peter Gerrard, head of insurance research at moneysupermarket.com, explained that the "innovative" form of protection was good for those who were willing to curb their driving habits for cheaper premiums.

He said: "Car insurance can be very expensive for young drivers, as our [research] indicates.

"The average car insurance premium for a man in his twenties is £370 - £108 dearer than the £262 average for a man in his thirties."

However, the Pay as you Drive scheme failed because not enough car insurance customers were willing to have a tracking box installed in their vehicle, Mr Gerrard stated.

Research by the firm found that 27 per cent of people would not consider having such a device installed no matter how much it reduced their car insurance premium .

Earlier this week, research by uSwitch.com found that the increasing cost of fuel, car insurance and tax, drivers are now paying around £3,800 a year to keep their car on the road.
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