The Norwich Union Pay As You Drive insurance to be launched

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The Norwich Union Pay As You Drive insurance to be launched

Mon 2nd Oct 2006

Norwich Union's Pay As You Drive insurance policy is set to be introduced and will result in customers paying premiums that reflect their specific driving habits.

The Norwich Union Pay As You Drive insurance relies on satellite navigation whereby cars will be fitted with a 'smart box' that, according to Norwich Union's website, will monitor "how often, when and where you drive".

The Sunday Times reports that the company is to announce a brace of Norwich Union Pay As You Drive products this week, one aimed at young drivers and the other at the older end of the market, following a pilot scheme.

Speaking to the Sunday Times, Simon Machell, chief executive of Norwich Union Insurance, stated: "We think at least half of all the UK's drivers will be interested in [Pay As You Drive]."

"We had so many people who wrote in and asked to take part in the pilot; we set up a regular newsletter for Pay As You Drive fans to keep them updated on developments," he added.

Allied to a fixed-rate fee, drivers will then be expected to pay extra according to the amount of miles they drive and when they drive. For instance, late night drives, when more accidents occur, will cost more.

Other benefits of the smart box system used in the Norwich Union Pay As You Drive insurance includes technology that can locate a vehicle if stolen and an itemised bill that will allow customers to keep track of their journeys.