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Benefits of Pay as You Drive highlighted

By Tom Farley, Tue 15 Apr 2008 - Published in Car Insurance

Pay as You Drive car insurance offers a number of benefits to car users that drive a relatively low number of miles each year, it has been claimed.

General insurance media relations manager at Norwich Union, Erick Nelson, said some customers are able to save more than one-third off their motor insurance costs when using the service.

Mr Nelson said that despite the relative newness of the insurance product, it was proving to be very popular.

"It's not that hard to see why when you think how much all drivers on Pay as You Drive are saving. Essentially, 40 per cent of our customers are saving more than a third off of their motor insurance premiums," he said.

He added that as the policy rewards drivers who use their car less, the policy also has environmental benefits.

Cars insured under the Pay as You Drive scheme have a GPS device fitted to them. This stores data about each journey made, which is then used to bill the car owner.