| For once finances seem to be going in favour of the | | | | For low mileage users, this system could present |
| UK motorist, with Esure announcing plans to double its | | | | significant reductions in premiums, for higher mileage |
| share of the UK's car insurance market - a move | | | | drivers searching about for the best deals at renewal |
| which is likely to spark a price war, other internet-only | | | | time is an absolute must. |
| direct insurers passing on to consumers savings based | | | | Unfortunately, last year five million motorists failed to |
| on their low overheads, and specialist insurers offering | | | | shop around, missing out on an average premium |
| reduced rates for their particular target markets. A trial | | | | saving of £180. Shopping around becomes |
| pay-as-you-go scheme from Norwich Union is also | | | | especially important for anyone coming to the end of a |
| creating a lot of interest for money conscious | | | | free insurance offer on a dealership car and should not |
| motorists. | | | | simply take the quote offered by the manufacturer's |
| The pay-as-you-go scheme uses a small box costing | | | | insurer, as significant savings can be made by |
| an initial £199 which is fitted in the driver's boot, | | | | shopping around. Comparisons sites such as Moneynet |
| to record when and for how long a driver actually | | | | enable consumers to quickly look at hundreds of |
| uses their car. The box stays in contact with a satellite | | | | insurance providers in one go, making it easy to find |
| which is sent regular updates of the journey data | | | | the best deals that are available, and they often have |
| stored on the box, tracking the vehicle and then | | | | their own extra discounts which are provided through |
| delivering the information to the insurer. The driver is | | | | their own sites. |
| then charged based upon how far at what time they | | | | While the government tries to work out new ways to |
| used their vehicle. | | | | extract more money from motorists, the |
| "We got a statement", said one member of the trial, | | | | competitiveness of the insurance industry is thankfully |
| "which showed what mileage we had done, and on | | | | helping to drive down the cost of insurance premiums, |
| what days of the week, as well as if we had been | | | | making it one of the few rays of hope for UK drivers. |
| driving in the evenings or peak hours." | | | | |