Pay as you drive
Discussion
Norwich Union pilots 'pay-as-you-drive' insurance
Norwich Union has announced plans to pilot a new-style pay-as-you-drive motor insurance.
The group is trying the new system, under which premiums are calculated based on when, where and how often motorists use their cars.
Five thousand volunteers will take part in a trial period for up to two years beginning this summer.
Customers will have a "black box" installed in their car which will collect data on when and where they use it, using global positioning satellites.
The information will then be relayed back to Norwich Union, who will use it to calculate a premium taking into account whether people were driving during the rush hour or off-peak, and on rural roads or in city centres.
Norwich Union envisages billing customers for their premium on a monthly basis, offering them tips on how to reduce the cost of their cover at the same time.
The general insurer, which is part of Aviva, has teamed up with IT group IBM and mobile phone operator Orange to provide the technology for the scheme.
IBM will provide the telematic technology systems, which enable information to be transferred between a car and computer, while Orange will be responsible for relaying information from individual drivers back to Norwich Union.
Norwich Union has an exclusive agreement with US-firm Progressive, which has piloted the systems in America, to use its data collection and pricing methods.
If the UK trial is successful the insurer will look at rolling it out in Europe.
What about that then, good or bad idea?
Norwich Union has announced plans to pilot a new-style pay-as-you-drive motor insurance.
The group is trying the new system, under which premiums are calculated based on when, where and how often motorists use their cars.
Five thousand volunteers will take part in a trial period for up to two years beginning this summer.
Customers will have a "black box" installed in their car which will collect data on when and where they use it, using global positioning satellites.
The information will then be relayed back to Norwich Union, who will use it to calculate a premium taking into account whether people were driving during the rush hour or off-peak, and on rural roads or in city centres.
Norwich Union envisages billing customers for their premium on a monthly basis, offering them tips on how to reduce the cost of their cover at the same time.
The general insurer, which is part of Aviva, has teamed up with IT group IBM and mobile phone operator Orange to provide the technology for the scheme.
IBM will provide the telematic technology systems, which enable information to be transferred between a car and computer, while Orange will be responsible for relaying information from individual drivers back to Norwich Union.
Norwich Union has an exclusive agreement with US-firm Progressive, which has piloted the systems in America, to use its data collection and pricing methods.
If the UK trial is successful the insurer will look at rolling it out in Europe.
What about that then, good or bad idea?
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