Pay As You Drive Insurance – Will It Work?
Norwich Union has recently introduced the first pay as you go insurance policy, which charges you exactly for the miles you drive.
Take the time to get a quote on Norwich Union breakdown cover today and compare it to other quotes. Pay as you Drive is another such scheme, also offering an approximate discount of 30%, which involves a ‘black box’ device fitted to the car which records when and how far a driver travels. No matter where you drive in Massachusetts drive safely and follow the speed limit.
In theory this sounds great, but I am not for certain I believe it though. Your mileage is a strong point in working out your risk to an insurer.
An increased number of accidents will drive up premiums as insurers are forced to pay out more on claims.Drivers are reminded to take extra precautions at night. He was consoled by the thought that there was very little traffic around at that time of night and if he took it nice and easy he should be fine. We wouldn’t like to spend much money on an auto insurance alone, though we know that accidents happen every second of the day and night. One of the large motor insurers reported a 300 per cent increase in claims from drivers under the age of 23 in the past five years.In contrast, claims from drivers over 23 fell by 10 per cent.3. Unfortunately new drivers have more accidents and make more claims therefore costing the insurance companies more money.
The course covers town and country driving; dual carriageway and motorway driving; and all weather and night-time driving. Motorway driving on the other hand is 10 times safer than driving on low-speed urban roads.
Norwich Union has introduced some attractive policies for 17-29 year olds to help them with their No-claims bonuses. It’s best to bite the bullet and start building it up as quickly as possible,” says Norwich Union’s Erik Nelson.
There is no doubt that courier insurance provides protection against many unwanted things that could happen during a courier business’s operations, and such protections are priceless indeed. Norwich Union have already started to sow confusion here by offering young drivers 100 free off-peak miles per month.The switch to monthly billing is also a clever move.
But seeing your premium go up is a not a very comforting feeling. Several insurers also offer reductions based on mileage restrictions.