“Pay as you drive” insurance extended to motorists up to age 70

Motorists up to the age of 70 can now take greater control of their motor insurance and save up to a third on their premiums with the news that Norwich Union is extending the age range of its flexible “Pay As You Drive” insurance policy.

The only insurer in the UK to offer a usage-based motor insurance policy, Norwich Union introduced “Pay As You Drive” insurance in October 2006, initially to motorists aged between 24 – 65, with a separate offering for young drivers.

Drivers over 60 typically have a lower annual mileage than other drivers and are less likely to use their vehicle for commuting or school runs – thereby avoiding the “peak” tariff times of 7 – 10 am. Of the motorists between 60 and 69 insured with Norwich Union, 88 per cent drive less than 10,000 miles a year, with the average mileage clocking in around 7,000 miles a year. “Pay As You Drive” insurance benefits most motorists who drive less than 8,000 miles a year. That’s why “Pay As You Drive” insurance, which calculates premiums based on when, where and how far a vehicle is driven, could suit many older drivers, giving them greater flexibility and control of their insurance premiums.

Kay Martin, head of “Pay As You Drive” insurance, said: “The original launch was hugely successful. “Pay As You Drive” is an ever-evolving insurance policy, and this extension to age 70 reflects our continual attention to its ongoing development, as well as overwhelming consumer demand. We feel that by extending the age range to 70, we are offering these drivers the opportunity to save money on their insurance premiums with a policy that is likely to better suit their lifestyle.”

“Pay As You Drive” insurance for motorists aged 24 - 70
This policy was developed as a result of data from Norwich Union’s “Pay As You Drive” pilot, involving more than 5,000 motorists, which ran from 2004 – 2006. The data showed that:

Driving during a morning weekday rush hour is 50 per cent more likely to result in an accident than driving at weekends or in the evening

Serious accidents are more likely to occur at night

Motorway driving is up to 10 times safer than driving on low speed urban roads

In-car GPS devices mean that customers receive monthly bills based on car usage, including time of day, type of road, and mileage. In addition to the usage-based tariff, the premium also includes a fixed monthly fee to cover risks such as fire and theft. For the 48% of customers, including retirees, who don’t use their car to drive to work in the morning rush hour, “Pay As You Drive” insurance represents a great opportunity to save on insurance, with costs for off-peak motorway driving starting at less than 1p per mile and off-peak urban driving starting at less than 4p per mile.

“Pay As You Drive” is now available to purchase online. Motorists can log on to payasyoudriveinsurance.co.uk to find out how much they could save with “Pay As You Drive” insurance.