Pay-as-you-go 'to cut accidents'

A scheme to charge motorists by the mile for car insurance has been welcomed by the AA Motoring Trust.

The Trust said Norwich Union's pay-as-you-drive insurance policy could reduce accidents. Under the scheme, an in-car 'black box' device calculates premiums based on when, and how often, the car is used.

The AA said charging people more for driving late at night when many accidents occur could change driver behaviour, particularly among the young.

"During the early hours of the morning you are 17 times more likely to be involved in an accident if you are a young driver," said Andrew Howard, head of road safety at the AA Motoring Trust. "Anything which makes young people think again about taking to the roads during these hours is likely to have an effect on accidents."

The nationwide rollout of Norwich Union's pay-as-you-drive cover follows a successful pilot scheme, during which 5,000 drivers who were fitted with in-car devices to monitor when, how often and on which roads they drove.

The company will offer policies for motorists with a sliding scale of charges in two different age groups. Charges for drivers aged 24 to 65 go as low as 1p a mile for off-peak motorway driving, while under-23s will be charged up to £1 a mile when driving at night.

For the full story go to: http://news.bbc.co.uk/1/hi/business/5408338.stm

Footnote: As a result of capturing data on driving behaviour, NU has created a database of information that may be useful to road safety professionals. In order to better understand the data requirements of RSOs, NU is conducting an online web survey, and is keen for LARSOA members to participate in the study.

Click here to complete the survey.

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