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Car Insurance Learner Driver: News Section

Car Insurance News

Insurance firm launches Pay As You Drive

A car insurance firm is launching a new initiative called Pay As You Drive, aimed at encouraging motorists to drive more safely on the roads.

Norwich Union's new policy will be launched by the end of the year, the insurer said, following a successful pilot test involving 5,000 drivers.

Under the PAYD scheme, motorists would be charged a fixed monthly fee and on top a premium for the number of miles driven – much the same as mobile phone style charges.

The plans pre-empt a government suggestion to introduce a PAYD road pricing scheme nationally, something they say could help cut congestion and reduce the environmental impact of driving.

The new method of taxing vehicles is recommended by road safety experts as a means of cutting the number of road accidents among young drivers, who traditionally are at the greatest risk of being involved in a crash.

According to the Times, Norwich Union Insurance chief executive Simon Machell believes that more than half of drivers would be interested in the new policy, after the pilot was inundated with drivers wanting to take part.



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