Drivers are set to take greater control of theirmotor insurance and save up to one third on their premiums with thelaunch of “Pay As You Drive”™ insurance fromNorwich Union.
The only insurer in the UK to offer a usage-based motorinsurance policy, Norwich Union has been trialling “Pay AsYou Drive”™ insurance since 2004, when a pilot of 5,000motorists was launched.
Using driving data from the pilot scheme, the UK’s largestinsurer has developed “Pay As You Drive”™insurance, the first policy to help motorists control the cost oftheir insurance by making informed choices about when, where andhow often they use their car. Pricing for “Pay As YouDrive”™ insurance begins from as little as a penny permile.
In-car GPS devices allow Norwich Union to build the insurancepolicy around each individual motorist. Customers will receivemonthly bills based on car usage, including time of day, type ofroad, and mileage, another first in motor insurance. Itemisedbilling will be available - much like mobile phone bills - with thepremiums for each journey calculated and totalled. This transparentapproach to motor insurance will help customers control their motorinsurance costs in a way that’s not been possible beforenow.
Research shows that British motorists are ready for “PayAs You Drive”™ insurance, with 67 per cent of alldrivers and nine out of 10 low mileage motorists saying they wouldconsider “Pay As You Drive”™ insurance – aclear indication that the time is right for this ground-breakingmotor insurance policy. (Source: Simpson Carpenter).
Now Norwich Union is launching “Pay As YouDrive”™ insurance to suit two different customergroups, each with different pence per mile rates to suit theirdriving habits.
New “Pay As You Drive”™ insurance formotorists aged 24 - 65
This policy was developed directlyas a result of the pilot data which showed that:
(Source: Norwich Union and Dept. for Transport statistics)
For the 48 per cent of customers who don’t use their carto drive to work in the morning rush hour, this represents a greatopportunity to save on their insurance and take advantage of theother benefits of “Pay As You Drive”™ insurance.Costs for off-peak motorway driving are from 1p per mile, whilecosts for off-peak urban driving are from 4p per mile.
New “Pay As You Drive”™ insurance for youngdrivers aged 18 - 23
Young drivers face high premiums dueto the nature and frequency of accidents. Research by NorwichUnion, the government and the ABI has shown that compared withother motorists, young drivers:
(Source: Norwich Union, ABI and Dept. for Transportstatistics)
As a result, Norwich Union is launching “Pay As YouDrive”™ insurance for young drivers, designedspecifically for drivers aged 18–23, with many new benefits.This policy aims to reduce young drivers’ insurance premiumsand the number of road accidents and casualties at night.
To encourage young drivers to leave their vehicles at home,policyholders will be charged a pound per mile driven during thehigh-risk accident time between 11pm and 6am. Off-peak drivingprices start from as little as 5p per mile. They will also benefitfrom 100 free off-peak miles every month.
The “Pay As You Drive”™ insurance for YoungDrivers pilot launched by Norwich Union in January 2005 saw thenumber of accidents among young drivers drop by a massive 20 percent, proof that this type of insurance policy can actually savelives.
What’s more, motorists already subscribed to “Pay AsYou Drive”™ insurance have saved an average of a thirdon their motor premiums.
Norwich Union expects to reduce young drivers’ insurancepremiums and the number of road accidents with the launch of“Pay As You Drive”™ insurance for youngdrivers.
Iain Napier, director of “Pay As You Drive”™insurance, said: “The launch of “Pay As YouDrive”™ insurance will give motorists access toinsurance that’s specifically tailored to them and theirdriving habits, potentially rewarding them with cheaperpremiums.
“We’re confident that “Pay As YouDrive”™ insurance is simply a fairer way of calculatingpremiums and gives customers greater control, flexibility andchoice. That’s why we expect the first ever “Pay As YouDrive”™ insurance proposition in the UK to be a hugesuccess with motorists.”
Kay Martin, head of “Pay As You Drive”™insurance, added: ““Pay As You Drive”™insurance provides an innovative solution for young drivers whilealso appealing to a broad range of motorists who see the benefitsof paying for insurance based on actual vehicle usage. The futureof insurance is tailored products to suit people’s lifestyleand the launch of “Pay As You Drive”™ insuranceis the first step in this direction.”
Motorists can log on to www.payasyoudriveinsurance.co.ukand use the online calculator to find out how much they could savewith “Pay As You Drive™” insurance.
For more information on“Pay As You Drive”™ insurance, including detailsof the guide, B roll, case studies and/orphotography, please contact:
Emilie Lien at Lexis PR, 020 7908 6421 /07956 106 987, email@example.com
Joanna Pritchard at Lexis PR, 020 7908 6440 / firstname.lastname@example.org
Erik Nelson, Norwich Union Press Office, 01603 682 264 email@example.com
Notes to editors
About‘Pay As You Drive’™ insurance
About Norwich Union
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