Insurance World

Pay as you drive car insurance from Norwich Union
05 October 2006

Norwich Union Direct the UK’s largest motor insurance provider as announced it’s new innovative “Pay As You Drive” cover, offering motorists the ability to reduce their insurance premiums.

Offering two new policies , the basis of which are usage-based insurance premiums, Norwich Union is finally offering cover after its initial pilot scheme, involving 5,000 motorists, was launched in 2004.

Norwich Union’s researched showed that over two thirds of the UK motorists are likely to welcome the initiative by which average savings are expected to be around 33%.

With the use of in-car GPS monitoring devices the UK’s largest car insurance provider is able to tailor make unique car insurance policies specific to the policy holder - premiums being based on usage.A completely transparent itemised billing system should allow drivers to finely tune there policies, yet remaining flexible.

Premiums will be based not merely on mileage but also on other factors such as when,where and how often the policy holder drives. Premiums can even be identified to each journey.

Offering two distinct policies: 18-23 and 24-65 year old drivers Norwich Union is efficiently using its huge databank of claims histories to pass on potential savings to the more discerned driver.

Using a combination of Norwich Unions own data together with statistics supplied by ABI and the department of Transport the pilot scheme revealed :-

18-24 year old drivers are at great risk during the early hours with this group accounting for 46% of fatalities on the road between 11pm and 6am, and are 56% more likely to suffer injury between 1am and 5am.
This group is 10 times more likely to have an accident at night and this rises to 14 times more likely on weekend nights.
Premiums will reflect these high risk periods and it is hoped will encourage young drivers to refrain from driving during these periods.The pilot scheme revealed a 20% drop in accidents involving young drivers and strenghtens the belief this type of policy will save lives. Norwich Union is hoping the introduction of this scheme will dramatically reduce the number of accidents involving young drivers.

In the other group - the 24-65 year old drivers, the pilot revealed that this group was 50% more likely to suffer an accident during the morning weekday rush hour than driving at weekends or in the evenings. Serious accidents are most likely to happen at night and that motorway driving was up to 10 times safer than low speed urban roads.
These statistics are encouraging to the 48% of Norwich Union customers who dont use their vehicle to drive to work during the weekeday peak periods.

Iain Napier, director of “Pay As You Drive”™ insurance, said: “The launch of “Pay As You Drive”™ insurance will give motorists access to insurance that’s specifically tailored to them and their driving habits, potentially rewarding them with cheaper premiums.

“We’re confident that “Pay As You Drive”™ insurance is simply a fairer way of calculating premiums and gives customers greater control, flexibility and choice. That’s why we expect the first ever “Pay As You Drive”™ insurance proposition in the UK to be a huge success with motorists.”

Kay Martin, head of “Pay As You Drive”™ insurance, added: ““Pay As You Drive”™ insurance provides an innovative solution for young drivers while also appealing to a broad range of motorists who see the benefits of paying for insurance based on actual vehicle usage. The future of insurance is tailored products to suit people’s lifestyle and the launch of “Pay As You Drive”™ insurance is the first step in this direction.”

Overall it is likely this type of policy will be well received by UK motorists, especially in view of the transparent billing system, enabling policy holders to make informed decisions as to how and when to use their vehicles.

Why Buy Life Insurance?
Life insurance is generally offered as part of a benefits package with employment. For the most part, however, these policies are rather small, usually in the ten thousand dollar range. People buy life insurance policies so that their families will not have to bear financial burden when a loved one passes on.

There is another reason to buy life insurance, however, and it is the life insurance settlement. Your life insurance policy can be settled for a large sum before the end of your lifetime, though many people are not aware of this. Others buy life insurance specifically with this reasoning in mind.

Purchasing a Life Insurance Policy
Though it may sound strange, it’s actually a good idea to buy life insurance while the policyholder is still in good health. Rates are usually cheaper when this is the case, which makes buying a life insurance policy a whole lot easier. Also, rates are less expensive if you buy life insurance while still young. If you’re young and in good health, it’s actually the best time of your life to purchase a life insurance policy – as strange as that may sound.

Don’t be afraid to do your own shopping around to find the best rates, and the best life insurance settlement. Comparison shopping is the way to make sure you get the best life insurance policy, and life insurance settlement, possible. Don’t rely on your employer to give you all the life insurance coverage you need. Generally, life insurance policies and life insurance settlements offered as part of a benefits package will not have good payoffs.

The Life Insurance Settlement
There are many reasons that you may want to settle your life insurance policy. Sometimes, a life insurance settlement is the best thing you can do for your family. For instance, when the policyholder has reached the age of seventy and there is a need for a new life insurance policy or long-term care, your best option may be a life insurance settlement. A change in health status, estate tax charge, or when the policy has outlived the beneficiaries may all be reasons to consider a life insurance settlement, as well.

A large factor in the life insurance settlement is the need for liquidation of assets. This may be due to bankruptcy or other financial reasons, or simply that the policy holder would like to acquire the sum of the life insurance settlement early. Your reasons for settling your life insurance policy are your own, and if you feel the need for a settlement then you should pursue one.

Be sure to discuss your life insurance settlement options with your insurance company. If needed, have a new life insurance policy in place before going forward with your life insurance settlement. There is no reason you cannot have two or more life insurance policies at the same time.

A life insurance settlement can allow you to enjoy some of the benefits of your life insurance policy, and be a good source of income when long-term care or extra income is needed. Be sure to discuss the exact amount that you will receive from your life insurance settlement with your insurance company, and find out the payment scale and time frame for receiving your settlement. When you agree on a life insurance settlement, the paperwork that you sign should include all of this information. Be sure to look over any paperwork very carefully before signing, because you can never be too careful with insurance companies.