Norwich Union road-tests 'pay as you drive' cover
Discussion
Premiums based on car usage could slash monthly bills.
Drivers who seldom use their cars stand to gain from the most imaginative development in this form of motor cover for many years.
With Norwich's new policy, you gain from leaving it in the garage
Norwich Union (NU), part of Aviva - the biggest insurance group in the United Kingdom - said this week that it is trying out a new type of cover where premiums are based on usage.
About 5,000 volunteers will road-test the Pay As You Drive (PAYD) motor insurance scheme under which costs will be calculated according to when, where and how much motorists use their cars.
The pilot scheme will last about two years and volunteers will have a "black box" installed in their vehicles to collect information on their travel movements via global positioning satellites (GPS).
Once collected, the information will allow Norwich Union to calculate a premium, taking into account whether people were driving during the rush hour or off-peak and on rural or urban roads.
More here: www.telegraph.co.uk/money/main.jhtml?xml=%2Fmoney%2F2003%2F03%2F15%2Fcmcar15.xml
Sounds great but what happens if you have a accident and they check your speed and find that you were doing 35 in a 30 speed limit.
I can just imagine it "Sorry we can't pay for the repairs as you were driving illegally"
Or am I being cynical?
Drifting
Drivers who seldom use their cars stand to gain from the most imaginative development in this form of motor cover for many years.
With Norwich's new policy, you gain from leaving it in the garage
Norwich Union (NU), part of Aviva - the biggest insurance group in the United Kingdom - said this week that it is trying out a new type of cover where premiums are based on usage.
About 5,000 volunteers will road-test the Pay As You Drive (PAYD) motor insurance scheme under which costs will be calculated according to when, where and how much motorists use their cars.
The pilot scheme will last about two years and volunteers will have a "black box" installed in their vehicles to collect information on their travel movements via global positioning satellites (GPS).
Once collected, the information will allow Norwich Union to calculate a premium, taking into account whether people were driving during the rush hour or off-peak and on rural or urban roads.
More here: www.telegraph.co.uk/money/main.jhtml?xml=%2Fmoney%2F2003%2F03%2F15%2Fcmcar15.xml
Sounds great but what happens if you have a accident and they check your speed and find that you were doing 35 in a 30 speed limit.
I can just imagine it "Sorry we can't pay for the repairs as you were driving illegally"
Or am I being cynical?
Drifting
How the hell would this be monitored, if said youngster cant afford the premium, spread over twelve months, how are they going to afford this? A monthly rebate for 'under usage' would make more sense and would encourage restricted use. Knowing the mentality of some of the yoof of today, if the car got wrecked, they wouldn't pay the fnance anymore(mum guaranteed it anyway) let alone the insurance!! It would be a good way of catching and prosecuting the uninsured though!
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