Our quote for the year came out at a predicted £250, around the same as we currently pay for unlimited use. We were told we would pay £90 up front (which included the one-off black box fitting) and then 0.29p/mile on motorways, 0.41p/mile on dual carriageways and 2.5p/mile around town. Those prices were all off peak and are for a 40-year-old couple, driving an ordinary car without claims or endorsements.
Britain's biggest insurer, Norwich Union, is offering two new policies aimed at low-mileage drivers where the premium is fixed according to when, where and how far you drive.
Under pay-as-you-drive insurance, the car owner pays an up-front premium of only around a third of a standard policy. He or she then pays a monthly charge on top which reflects how far they have driven, the type of road used and the time of each journey.
The policies have been launched following a two-year pilot of 5,000 motorists. One policy is for young drivers aged 18 to 23 and a second is for those aged 24 to 65.
Young drivers will get 100 free miles a month, after which they will be charged according to their driving habits. Older drivers pay as they go from the start.
But younger drivers who currently pay big money to insure their cars look to be the real winners in this scheme (see box). Faced with a £3,000 insurance quote, who wouldn't be prepared to moderate their driving habits to save a £1,000 a year?
Tags:
Driving Habits
New Policies
Drivers car Insurance
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