Pay-as-you-drive car insurance could help some save money, according to one company .
Erik Nelsen, a spokesperson for Norwich Union, said that people who did not drive much could be paying over the odds for their car insurance .
Mr Nelsen said that most insures simply assumed that people were driving around 12,000 miles a year and anyone who did less than that might want to consider the pay-as-you-drive option.
He said that the system involved the installation of a GPS box in your car which provides information on the distance travelled, the time of day the car is used and what kind of roads have been used.
Mr Nelsen said: “Because we have more information, we’re going to be more accurate and better at our job of underwriting you.”
He also said that people could save around ten per cent by looking at car insurance quotes online .
People could also save money on their car insurance by keeping their vehicle in a garage, if one was available.