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Car Insurance -
Car Insurance Pay as you Drive |
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How many of you out there are familiar with the fairly new form of car insurance known as pay as you drive car insurance? I am quite sure that there are a fair amount of you that are not familiar with this type of insurance. I know the next question you will probably be asking is how does it work?
Pay as you drive insurance is the first product of its kind, which really utilises modern technology in a manner that will see both the customer’s and their insurers benefit. With conventional car insurance we are used to paying a set monthly premium, based on a variety of factors. Factors include the type of car you own, where you park your car, the estimated mileage the car will acquire in a year and whether or not the car will be used as a method of transport to work.
The premium calculates the likelihood of you the driver being involved in an accident, which may differ depending on the amount of time you spend driving and the type of driving you may do. With a pay as you drive type insurance, provided by Norwich Union, you are given a entirely personalised premium every month which is dependent on the amount of driving you do. Also when you drive and the destinations you drive to.
For example if over a weekend you drove to places such as Cornwall or Margate for a weekend break from London, your insurance for that month will be slightly higher than the month your car was parked in your garage, whilst you were on holiday for instance. The premium you pay each month is calculated by the time of day that you drive, they type of road on which you drive and the amount of mileage that your car accumulates each month.
When you have fully signed up to pay as you drive insurance, Norwich Union install a black box in your car, in an area that it will not be seen easily. The box is similar to a tracking device that records all your driving habits.
From this information that is gathered you are charged on your insurance accordingly. The device is capable of recording information such as when exactly your car is being driven, the amount of mileage that your car has driven and the precise time of day in which your car is being driven.
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