The latest pay-as-you-go car insurance has been launched, whereby a satellite black box is used to monitor how a car is driven and reward careful drivers.
The cover from insurance underwriting agency, Insure the Box, is targeted at motorists who drive a limited number of miles each year, such as school-run mums and second car users. It is also expected to be competitive for younger drivers who usually face high premiums.
A GPS satellite tracker records when a car is driven and the cost of insurance is then linked to the mileage. Mike Brockman, founder of Insure the Box, likens the idea to a pre-paid mobile phone . He said: “Annual cover includes 6,000 miles to start with and if you find you drive further and need more in the year, you can buy a top-up.”
Insure the Box will assess risks and price the cover, but other insurers will stand behind the car insurance .