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Car Insurance -
Pay as you go car insurance - 05/03/2008 |
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Insurers are trialling a new car insurance strategy, pay as you go. Currently motorists are charged on an annual basis, this new idea charges motorists by how far they drive and when, on a monthly basis.
Factors such as the type of car and location is taken into account and then drivers are charged depending on how often and what time of day they drive. Norwich Union says that young drivers are ten times more likely to be involved in an accident at night than they are during the day.
Prices of Norwich Union’s pay as go car insurance for 18 -23 year olds range from pennies per miles during the day, to as much as £1 per mile after dark in the danger hours.
The insurer receives data via satellite from a GPS device installed in the car, in the quest to get cheap car insurance it seems people are willing to try different tactics, although different methods will work out cheaper for different people.
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