Pay-as-You-Drive Insurance
Some car drivers in the U.K. who are insured by Norwich Union are participating in a pilot project to evaluate the feasibility of basing insurance premiums on how and where they drive. Norwich is paying to install the following black box in cars that are in the pilot program.
The black box records how far and how fast the vehicle has been driven. Using GPS, it also records which roads the car was driven on. All that data is then uploaded to the insurer via a phone link. The insurer then calculates the premium based on the route chosen and time of travel. Presumably, those who drive long distances along busy routes every day will pay more than those who don’t.
