Car insurance for women news
26/06/2008
Pay-as-you-drive cover scheme withdrawn
A highly publicised men and women's car insurance scheme that allowed motorists to pay for cover as they drove has been abandoned.
One of the world's biggest insurers, Aviva, has been running the scheme in the UK via its Norwich Union arm. Now, users of the scheme look set to see their premiums rise after its withdrawal.
The company indicated the new type of policy - called 'pay-as-you-drive' - was unworkable. No mention was made of any losses as a result of setting up and running the scheme.
The Norwich Union business model that enabled monetisation of quieter driving times appears to have been wrong, at least at the moment.
Billed as a state-of-the-art system when launched, black box technology linked to satellites was said to help drivers who signed up to save on car cover costs.
It was promoted to motorists - men and women's car insurance policyholders - who drove less during night time and rush hours. Traditionally, accidents and claims happen less during these times.
