'Pay-as-you-drive schemes can reduce car insurance costs'

Date: 10/01/2008 15:00

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Those consumers who do not spend too much time behind the wheel may benefit from investing in a pay-as-you-drive car insurance scheme, according to Norwich Union.

Erik Nelsen, a spokesperson for the firm, states that the majority of insurers assume that road users are travelling 10,000 to 12,000 miles per year.

However, if motorists are covering less than this distance, they could benefit from reduced premiums through a pay-as-you-drive scheme.

"This uses a GPS box in your vehicle that will track the road you're on, the time of day you're using your car and how many miles you're driving. Based on that information, we can work out a premium," Mr Nelsen explains.

Norwich Union states that those driving less than 6,000 miles could save up to 30 per cent on their premiums.

Consumers looking for a competitive deal on car insurance may find that they can get a great price on a policy from InsureandGo.

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