Norwich Union Scrap Pay as You Drive

18. 06. 2008 posted in: Car Insurance News 2008

Cheap Car Insurance Scheme Goes

Only two years into the project Norwich Union have pulled the plug on their revolutionary Pay As You Drive scheme aimed at helping younger drivers get cheaper car insurance premiums.

Under the Pay As You Drive Scheme drivers were able to do exactly that but in order for it to work they had to have a 'Black Box' installed into the vehicle in order for the same to be monitored and charged out correctly.

It appears however that the scheme designed to a cheap car insurance option has not attracted enough attention and one of the reasons being reported is the fact many drivers where not happy to have the device fitted into their vehicle. In respect many saw the device as another intrusive 'big brother' type system.

The loss of the Pay As You Drive will however be a big blow to the many younger drivers who could take advantage of it purpose and will now have to revert to more conventional means over motor insurance cover.

The Pay As You Drive scheme was also a great money saving opportunity for those drivers who wanted a low usage type of car insurance cover.

Even though Norwich Union believed the take up on the car insurance cover was going to be slow they simply cannot see the same as being viable under the numbers that have participated in the Pay As You Drive scheme. Policy holders will be offered an alternative cover.