Motor insurance firm Norwich Union has revealed it has ordered a further 35,000 in-car black boxes for its 'pay as you drive' scheme after initial trials of the technology proved a resounding success.
Back in February 2002 the company launched a pilot initiative involving fitting one of the boxes inside the cars of willing participants. The box would then record the time, distance and location of a vehicle's journey, allowing monthly car insurance payments to be calculated based on when, where and how often the vehicle is used.
A significant number of motorists initially signing up to take part in the trials of the revolutionary scheme were teenagers and those in their early twenties. Disgruntled at the price of young driver car insurance, they saw the 'pay as you drive' policy as an opportunity to keep their premiums down and not suffer because of the driving habits of others their age.
Norwich Union has revealed that the 5,000 customers who were selected to take part in the pilot recorded over ten million journeys, averaging 8,500 miles per year. This is well below the national average of 11,000 miles per year and shows that the black boxes played a part in cutting car usage and, therefore, reducing damage to the environment.
A spokesman from Norwich Union said, "By increasing the number of boxes in our pilot, we will have access to additional data to help ensure that a future 'pay as you drive' insurance propositions are best suited to British motorists.
"Our learnings from our pilot are ongoing and substantial, and will shape any future 'pay as you drive' insurance products."
Mike Page from Hoot Car Insurance Services, the young driver car insurance specialists, commented, "If this system really can prove itself beneficial to the motorist, then I expect that 'pay as you drive' motor insurance policies will have a big part to play in the future.