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'Pay As You Go' Car Insurance Launched

Norwich Union launches pay-per-mile car insurance for young drivers

12th January 2005

Norwich Union, the UK's biggest car insurer, has launched a new form of 'pay per mile' car insurance for drivers aged between 18 and 21.

Under the new scheme, policy holders' cars will be fitted with a device that monitors vehicle usage, and a monthly bill will be issued based on the distance travelled. The cost per mile will be higher at 'peak times' between 11pm and 6am, when accidents are more likely.

Installation of the monitoring device will cost a one-off £199, but Norwich Union says that this cost will be more than covered by savings in insurance premiums for most young drivers.

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