Pay as you go car insurance pilot in full swing
05/04/2005
A revolutionary pay as you go car insurance pilot is proving a success with customers, according to Norwich Union.
The two-year study involves the use of a Global Positioning Satellite (GPS) device which records a driver's trip and is then capable of transmittingthe information to the insurer via the mobile phone network.
The system allows the company to bill motorists for their insurance cover based on the number of mile they have driven.
The technology has already undergone extensive US trials by Progressive Insurance and has helped to reduce premiums for many low-mileage car users, although it does tend to mean expensive cover for long distance drivers.
Young drivers, aged between 18 and 21, could also benefit from the scheme as they often have relatively high premiums but tend to drive short, low risk journeys.
An online quote will take less than a minute, and you can see just how much you could save.
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