Pay as you drive reducing car accidents among younger drivers

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Pay as you drive can save lower mileage drivers money on insurance policies  - 2nd January 2008

 Norwich Unions Pay as You Drive motor insurance cover has been running over a year now and has been welcomed by many UK drivers, particularly younger ones where it is also claimed to have reduced the number of road accidents

The insurance cover works by the policy holders vehicle having a global positioning system installed in their vehicle, and then a monthly bill is issued based on a fixed rate for cover whilst the vehicle is not in use, and then a charge based on the distance driven, the areas in which journeys are taken, and the time the journeys are made.

orwich Union had noticed that young drivers were more likely to be involved in a car accident between 11pm and 6am so increased the cost of driving between these times for that age group.

This does not prevent them driving between these times, but charges more for these journeys, which will be shown on the itemised monthly bill.

The number of claims made by policyholders in the age group 18 to 23 using the Pay as You Drive scheme has fallen by over 30 percent, and also resulted in a 20 percent reduction in their cost of cover.

The Department for Transports statistics shows that there were over 54,000 car accidents involving drivers aged 17 to 24 in 2006, with over 53 percent of these resulting in casualties.