Car Insurance News

Student drivers can benefit from pay-as-you-drive insurance, according to one provider.

Norwich Union has claimed that students that take out pay-as-you-drive policies could save "more than a third off their motor insurance premiums".

Erik Nelson, general insurance media relations manager for Norwich Union, said that young people who do not drive their car at night would benefit from pay-as-you-drive.

He added that young drivers are ten times more likely to have an accident at night so policymakers set up premium times making it more expensive to drive at night.

"It helps younger drivers control their motor insurance premium - something they have never been able to do before," he continued.

He concluded: "It puts them in control of their finances, and a lot of young drivers are changing their driving behaviour in exchange for lower premiums."

According to research conducted by the provider last year, only three per cent of its customers using the policy opted to drive at night and the number of claims made by male drivers dropped by 30 per cent.

Road safety charity Brake recently found that one in 11 young drivers had driven under the influence of drugs and half admitted using their mobile phone while driving.

Pay-as-you-drive works by a GPS device that is fitted in the car and transmits information about each car journey via a GSM network to Norwich Union who then bill accordingly.

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