Pay As You Drive Insurance

We currently have our car insured with Norwich Union, and decided to ask them to quote for their new Pay-as-you-Drive scheme. We have a low annual mileage (less than 4000 miles per year) so thought that it would be right for us.

Here is the monthly breakdown they gave for us, living in rural North Norfolk:

Time of Day	Motorways		Dual Carriageways		50/60 roads		20/30/40 roads
	Miles	Pence Per Mile	Miles	Pence Per Mile	Miles	Pence Per Mile	Miles	Pence Per Mile
Peak:	7	1p	7	2p	17	3.5p	20	5.5p
Off-Peak:	20	0.5p	43	1p	106	2p	113	3p

This equates to approximately £21/month for the mileage component of the insurance.

Notes

• Peak Times are Midnight-5AM, 7AM-10AM (Mon-Fri only)
• There is a one-off setup fee of £108 (including £50 GPS device installation fee)
• There is a flat rate monthly fee of £9.30
• Itemised billing (cost per journey summary) costs £2/month
• Payment would be by monthly direct debit (variable amount)

In total, therefore, it will cost over £360 per year, assuming 4000 miles a year spent mostly on the rural North Norfolk roads. And plus the £108 one-off setup fee.

For comparison, our standard comparable renewal quote from Norwich Union is £335. No comparison, really!

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