Pay as you drive
Norwich Union has been running a pilot scheme since 2004 with some 5,000 drivers and is now ready to roll it out to other motorists. The new scheme will charge drivers based on when and where they drive and will help motorists reduce the cost of their premiums. The company says this should cut their premiums by around a third. Younger drivers will be charged more if they travel during the night as this is when more accidents occur. The company will be able to monitor the drivers via an in-car GPS device and be based on their car usage taking into account factors such as time of day, type of road and mileage.
Norwich Union is offering two types of cover, one for drivers aged 18-23 and another for those aged 24-65. It was found that 18-23 year olds account for 45 per cent of road fatalities from 11pm to 6am. Policy holders will be charged £1 per mile when driven between 11pm and 6am and off peak will cost from 5p per mile. | 
