Navteq, a provider of digital maps for vehicle navigation, is supplying map data to Norwich Union for its Pay As You Drive insurance scheme, which is designed to save UK drivers up to one third on their premiums.
Drivers are provided with in-car GPS devices coupled with Navteq street level maps, enabling Norwich Union to calculate insurance premiums for each journey, depending on time of day, type of road and mileage.
Iain Napier, director of Pay As You Drive insurance at Norwich Union, said that Navteq has full coverage of the UK down to street level and has a team of 28 geographic analysts continually updating the map data. Releasing the new map data every three months also helps maintain its accuracy.
Norwich Union launched Pay As You Drive across the UK following a successful pilot scheme involving 5,000 motorists. The objective is to help drivers control insurance costs by making informed choices about when to use the car. Pricing begins from one penny per mile.
Bills will look similar to mobile phone bills, with the premiums for each journey calculated and totaled.
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 is why we expect this unique UK proposition to be a huge success with motorists, commented Mr Napier.