Pay-as-you-drive insurance makes a comeback

According to one provider, pay-as-you-drive car insurance policies are about to take British motorists by storm.

The concept of using a ‘black box’ in-car tracker to measure mileage has been around for a while, but take-up has been slow and pioneer Norwich Union ‘paused’ its policy last year because of the cost of providing the service. More Than still provides a similar policy for young drivers, called Drive Time, but until now there have been limited alternatives available for consumers.

However, as a result of new technology and the additional bonus of theft-tracking, several insurers are now offering policies through Coverbox.

Sandy Dunn, chairman of Wunelli, the company behind Coverbox, said: It will work very much like a monthly utility bill, the key difference though is that low risk drivers who use their cars little and in off-peak periods are not penalised by the actions or accidents suffered by higher risk drivers driving at higher risk times.”

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