Pay As You Drive insurance tracks cars to trim costs

摘要

So far, the promise of lower premiums has been elusive. The same satellite-based navigation and vehicle-tracking technology that can direct you to the closest gasoline station also could lead you to lower car insurance premiums. Maybe. Norwich Union, Great Britain's biggest insurer, and Royal Sun Alliance have harnessed high-technology satellite systems to bring their customers a better deal. They had hoped to attract new policyholders with lower premiums. But so far, the payoff has been elusive. The theory is simple. Policyholders' premiums are calculated based on where they drive and, in particular, what time of day - or, worse, night - they drive. That's where the satellite tracking comes in. First in the market was Norwich Union, which launched its Pay As You Drive policy in October 2006. But that policy has been put on hold, says spokesman Erik Nelson.