Motor insurance initiatives in the UK - Pay as you go cover

Motor Insurers have developed a radical new method of underwriting insurance - particularly for those with limited driving experience. The initiative is aimed at high risk road accident claim victims

Norwich Union are one of many insurers who have released details of a "Pay as you go" type of insurance cover. The general concept involves restricting premiums on the proviso that the driver agrees to limit the number of hours behind the wheel particularly when driving at night or during "high risk" hours. Vehicles are fitted with a tracking devices to ensure compliance.

The savings on premiums can be significant which will be a real attraction for some policyholders. On the other hand customers must abide by the restrictions if they are to maintain the cost saving benefits.

16th October 2006