Norwich Union to use car-tracking sat-nav tech

Norwich Union is using GPS satellite-based navigation technology to track cars as part of a new pay-as-you-drive insurance scheme which could lower premiums for many drivers.

The in-car GPS device will store information on every car journey and each customer will get a monthly itemised insurance bill based on how much they used their car, what time of day they used it, what type of road it was driven on and how many miles they drove.

The in-car device is the size of a DVD case and will be fitted with an emergency button that will allow drivers to alert someone in the event of a breakdown or accident.

The move follows a pilot of 5,000 motorists using the technology which Norwich Union has been running since 2004. The insurance company said the new pay-as-you-drive policy will cut premiums by up to 30 per cent per year for some drivers, such as those who don't use their car in the morning rush hour.

Norwich Union and Department for Transport statistics show serious accidents are more likely to occur at night, motorway driving is up to 10 times safer than driving on local roads and driving during the weekday morning rush hour is 50 per cent more likely to result in an accident than driving at the weekend or evening.

Two policies are available, one for motorists aged 24 to 65, and one for young drivers aged 18 to 23. For the young drivers' policy, high premiums of £1 per mile will be charged during the "high risk" accident period of 23:00 to 06:00 to encourage them to leave their cars at home.

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The in-car device is the size of a DVD case and will be fitted with an emergency button that will allow drivers to alert someone in the event of a breakdown or accident. The black box will also allow Norwich Union to track and locate stolen vehicles.

The Smartnav satellite technology is being provided by Trafficmaster and customers can choose either a pay-as-you-go scheme or annual subscription for the new insurance policy.

Kay Martin, head of pay-as-you-drive insurance at Norwich Union, said in a statement: "The future of insurance is tailored products to suit people's lifestyle."