NU “Pay as you Drive” reduces claims and premiums
The Norwich Union’s Pay as you Drive scheme, which was launched just over one year ago, is being hailed as a breakthrough for young drivers.
The motor policy uses new technology to lower accident rates by changing motorists’ driving patterns.
Policyholders have a global positioning system fitted in their vehicles and premiums are based on the distance driven, the time at which journeys are taken and the areas travelled.
Norwich Union underwriters are aware that young drivers are far more likely to be involved in accidents between 11pm and 6am, so cover between these times is expensive.
As a result, the number of claims made by drivers aged between 18 and 23 has fallen by more than 30% during the past year and those who have taken up the financial incentive not to drive at night have found that their premiums have reduced by around 20%.
Policyholders can always make a night-time journey if they wish, as bills are produced monthly and are itemised.
Road transport statistics show that one in eight driving licence holders is less than 25 years old, and yet this group makes up one in three of all who die in UK road accidents.
At night, almost half of the people who are killed on the road are aged 24 or under.
Category: Car Insurance News, Insurance News, Norwich Union Insurance News
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