Pay As You Drive Insurance Scheme Scrapped

Published: 6/16/2010

The largest insurer in the UK, Norwich Union, has suspended what had been described as a ground breaking form of car insurance that used a black box to track every journey.

The idea was to set premiums based on the risks faced by drivers. This would mean that drivers avoiding rush hour or late night driving would pay less for their car insurance. Norwich Union cited a slow take up of the idea and too few customers as the key factors for withdrawing the car insurance scheme.

There has also been a certain amount of mistrust from drivers regarding the black box. Having every journey monitored is not what Britain is about and there could be situations where a drivers Norwich Union car insurance policy could be negated if a vehicle was seen to be speeding at any time, or even have the data passed to the police. All in all most people feel the withdrawal of the black box idea is a good result and hope that it will not see the light of day again.