By Andy McCue, 5 October 2006 15:30
NEWS
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 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.
silicon.com Financial Services
Get the latest financial services news straight to your inbox. Sign up for the FS newsletter today!
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."
Comments
There are 10 comments. Join the discussion
1. Fred Perkins
SatNav is a great gadget, but far from being rigorous enough to be used as a journey log. In lots o places, even the best units lose contact with the satellite altogether - and it's very easy for the user to "blind" the satnav.
So, just how has NU managed to develop a unit that even approaches the data integrity of a commercial tachograph?
2. Roger Huffadine
Finally the time has come for me to start producing "spoof" boxes. These devices overwhelm GPS receivers and feed them with false time and location information. So that you can tell a tracking device that you are somewhere else - even if it uses an internal clock. I think I'll go for the non rush hour low mileage insurance :))
3. anonymous
They must be mad to think this is going to be taken up by anyone other than a few old folks who don't understand they are having their movements tracked by a company who's main operation is in India.
For the rest of us law abiding citizens, we don't want a spy in our cars, charging us extra for sitting in traffic jams (adding insult to injury I would have thought).
Regarding the criminal element it will be the first thing they rip out as part of their vehicle relocation projects so there is no security here either, just insurance company hype to sell a daft idea.
I give it 12 months before they lose so much money on policies, they have to shut it down.
4. Mike Whittaker
Not for the first time:
Feb 2002
http://news.bbc.co.uk/1/hi/business/1831181.stm
Aug 2004
http://news.bbc.co.uk/1/hi/magazine/3574010.stm
Jan 2005
http://news.bbc.co.uk/1/hi/programmes/working_lunch/4167685.stm
Will it take off this time ?
5. anonymous
looks like they will also know if someone has been speeding and adjust the premium upwards accordingly...
6. Richard Davies
Anyone who thinks this will benifit the road user is mad. Its just big brother making more money and getting more info to ensure they know your every move...if you crash they will have every bit of information available to send you a letter telling you there is a reason why they won't pay. i.e. you were doing 33 in a 30 or something!
7. IvorG
To everyone with 'Big Brother' Syndrome.
Are you going to throw away your mobile phone (traceable), stop using the internet (traceable), hide your number plates (IR cameras) dress up in disguise (more CCTV in the UK than anywhere else in the World).
Lie back and enjoy cheaper premiums they know where you are anyway!!
8. anonymous
Tachographs have no integrity.
I once saw a coach driver swapping paper discs every hour, using up spare capacity on a stack of discs he carried.
The device wasn't locked or sealed by his depot, and I've no doubt the ones in lorries are the same.
Don't tell me these devices record accurately, or I'll laugh so loud that my trousers may never dry...
9. anonymous
If NU "claim" this system works, then it will not be many months before Mr Blair decides ALL cars will have a similar system "for security / safety reasons". I'm sure the spin will be very convincing.
Do we really want to go down this route?
All NU account holders should move their policies immediately. It's the only message that would be understood.
Failing that, time to leave the country?
With the introduction of a flawed and possibly unworkable ID card system we appear to be heading towards a non-democratic police state along the lines of some third world backwater.
10. John Maher
Hmm... why the cut at 65 years? Seems like another example of ageism. Yes, I'm 68. I also would not join NU whatever they offered!