Pay-as-you-drive insurance trials

Trials for pay-as-you-drive insurance have been brought forward by Norwich Union and are now under way.

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Trials for pay-as-you-drive insurance have been brought forward by Norwich Union and are now under way.

Talking to What Car? last week, Norwich Union said a pilot programme would only be launched later in the year. Now the insurer says some customers are already testing the system, which uses satellite navigation technology to track cars and bill according to use.

Eventually 5000 drivers will take part in the trial, which could last up to two years.

If it proves successful, the pay-as-you-drive insurance could be offered to all drivers late in 2006.

Monthly bills could break down charges so motorists would be able to reduce their premiums by changing their travel patterns. This could offset and eventually pay for the installation of necessary technology in cars. Norwich Union anticipates motorists would have to cover this initial cost.

Although there are no places left on the pilot scheme, motorists interested in finding out more about the project can e-mail payasyoudrive@norwich-union.co.uk.