Pay As You Drive car insurance

Here's a car insurance product that might be an awful lot cheaper for people who don't use their cars much or off-peak drivers.

In 2006, Norwich Union caused a stir by launching a new type of car insurance, called Pay As You Drive (PAYD). It offered insurance based on how often a car was used and when it was driven, with prices starting from 41p a mile, plus installation and monthly fees. It used GPS-based telematics technology to measure these factors via a box positioned in the car.%VIRTUAL-SkimlinksPromo%