Europe News: Norwich Union extends pay-as-you-drive insurance to under-70s

Europe News:  Norwich Union extends pay-as-you-drive insurance to under-70s

Norwich Union is extending the age range of its usage-based pay-as-you-drive insurance policy to include drivers up to the age of 70.

Drivers over 60 typically have a lower annual mileage than other drivers, and are less likely to use their vehicle for commuting or school runs – thereby avoiding the peak tariff times of 07h00 – 10h00.

Pay As You Drive™ insurance calculates premiums based on data from in-car GPS devices that reveal when, where and how far a vehicle is driven. 88% of the 60 – 69-year-old motorists insured with Norwich Union drive less than 10,000 miles a year, with the average mileage clocking in around 7,000 miles a year.

Norwich Union’s usage-based insurance policy was developed following a pilot program involving more than 5,000 motorists, which ran from 2004 – 2006.

According to data from the pilot, driving during rush hour is 50% more likely to result in an accident than driving at weekends or in the evening; serious accidents are more likely to occur at night; and motorway driving is up to ten times safer than driving on low speed urban roads.


Leave a comment

Your email address will not be published. Required fields are marked *