The ill-fated pay-as-you-drive car insurance policy could make a comeback sometime in the future according to consultancy, Watson Wyatt.

Although Norwich Union was forced to pull the scheme from the market, Watson Wyatt analysts believe pay-as-you-drive was ahead of its time and likely to reappear in forthcoming years.

The pay-as-you-drive concept allowed policy holders to pay car insurance based on their personal vehicle usage and satellite technology allowed Norwich Union to monitor the movements of each individual customer. The company was recently forced to discontinue the policy as it failed to attract enough custom but has refused to rule out a re-launching pay-as-you-drive in the future.

Watson Wyatt analyst, James Tanser, also believes that there is still a lot of mileage left in the concept.

“I wouldn’t write off usage-based motor insurance entirely,” he said. “This is a heavy blow for the pay-as-you-drive insurance concept, but it may eventually recover.”

Mr Tanser pointed to the increase in other services that utilise satellite technology, such as GPS units with panic buttons and concierge services, as proof that pay-as-you-go car insurance may resurface one day.