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Benefits of pay-as-you-go female car insurance
Thu, 05 May 2005

Pay-as-you-go car insurance policies could benefit female motorists, according to Norwich Union.

The insurance company is conducting a two-year study that uses a high-tech Global Positioning Satellite device to log drivers' trips, meaning that drivers pay insurance based on their actual distance travelled.

Therefore, motorists who drive only short distances such as the daily school run could find their insurance costs reduced.

The technology has already undergone extensive US trials by Progressive Insurance and has helped to reduce premiums for many low-mileage car users, although it does tend to mean expensive cover for long distance drivers.

Young drivers, aged between 18 and 21, could also benefit from the scheme as they often have relatively high premiums but tend to drive short, low risk journeys.

track© DeHavilland Information Services plc

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