Way to Cheaper Car Insurance.

Norwich Union is selling two 'Pay as you drive' insurance policies, one for 18-to-23-year-olds, the other for 24-to-65-year-olds. Both rely on information from in-car GPS devices that tell the insurer when, where and for how many miles the car is used. Customers will receive a monthly bill itemising journeys, with the premium for each trip calculated. Tariffs for older drivers, from 1p a mile during off-peak hours on motorways to 12p a mile at peak times on roads with speed limits up to 40mph, should work out cheaper for people who do less than 8,000 miles a year or don't drive during the morning rush hour in urban areas. The young drivers' policy will charge from 5p a mile during 'off-peak' hours (6am-11pm) and £1 a mile at 'peak' times (11pm-6am). Installation of the GPS system will cost £50

Tags:
Premium
off-peak hours
Drivers Policy