Car insurance 'may be lowered by pay as you drive'

Posted :10-01-2008

Consumers looking to reduce their car insurance premiums, who drive less than the average motorist, may benefit from a pay as you drive scheme, reports Norwich Union.

Erik Nelsen, a spokesperson for the provider, suggests that most insurers assume that drivers cover 10,000 to 12,000 miles in a year.

He adds that if motorists are covering more than this they should make their insurer aware of this.

But, if they are covering less than this they could reduce their car insurance premiums through a pay as you drive scheme.

"This uses a GPS box in your vehicle that will track the road you're on, the time of day you're using your car and how many miles you're driving. Based on that information, we can work out a premium," explains Mr Nelsen.

The firm states that if driver covers less than 6,000 miles on an annual basis then they could save as much as 30 per cent on their car insurance premiums.


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