The policy monitored customer’s driving by tracking their movements using a black electronic box installed in the policy holder’s vehicle which relayed information, via satellite, to the insurer who could then adjust the customer’s premiums depending on which time of day the vehicle was being used. As the majority of accidents happen during rush hour or late at night, pay-as-you-drive policy holders could save money by avoiding the roads at these times.

Norwich Union had aimed to reduce car insurance payouts by encouraging motorists to drive at safer times which would then allow the company to offer cheaper premiums.

However the scheme has now been brought to a close with Norwich Union blaming a lack of custom and indifference to the black box technology from carmakers as the decisive factors influencing the closure.