Following a report for the dept of Transport last year to try and get uninsured young drivers to insure their cars, the Norwich Union have announced a 'Pay as you drive' insurance scheme.

This is for motorists between 18 and 21 (but is initially limited to 1500 participants) and uses in-car technology to calculate premiums based on when and where they drive. A black box is fitted which uses GPS to record their journeys. The info is then transmitted to NU via a mobile phone network.

The premiums will be calculated similar to mobile phone tariffs, and drivers can control their premium levels by driving mainly "off peak" which is set at 6am to 11pm. This off-peak time has been decided on statistics from accidents involving 18-21 year olds which show that they have a greater risk of being killed or seriously injured between 11pm and 6am.

What does everyone think?

All for it. Makes much more sense. Of course, finding the £199 to buy/fit the box initially may be a stumbling block. I also understood that the GPS would differentiate between road types and times (peak/off-peak, A and B roads etc) and charge in bands.
I also read that there are less young people learning to drive these days than in 1975. Mostly due to the high costs I guess. New drivers will help the driving school business I guess?
Privacy concerns may be the big stumbling block though.

It was announced back in August last year:

http://www.theregister.co.uk/2004/08/18/per_mile_insurance/

... but has recently been decided to be 'not commercially viable':

http://www.theregister.co.uk/2005/02/01/car_insurace_payd/

i.e. it means they can't fleece drivers.

Originally posted by alchresearch
It was announced back in August last year:

http://www.theregister.co.uk/2004/08/18/per_mile_insurance/

... but has recently been decided to be 'not commercially viable':

http://www.theregister.co.uk/2005/02/01/car_insurace_payd/

i.e. it means they can't fleece drivers.

Then try looking at

http://www.payasyoudriveinsurance.co.uk/

Norwich Union are going ahead with it

My friend was approached by Norwich Union to try this out, they were going to charge HIM to fit a box to his car that would charge him £1/mile if he drove in their peak time!!

I think i'll be sticking to the annual fee personally, they stand to profit millions and still find reasons to hike the premiums.