January 2008 Car News - GBCarLoans.com

8th January 2008

Low-mileage drivers 'can seek out help with money'

Drivers who use their cars rarely or only cover small distances might like to consider investigating a recent product designed to provide help with money to motorists, one firm asserts.

Personal finance provider Norwich Union states that a recently created pay-as-you-drive scheme has proven very popular for those with low mileages.

The programme sees consumers who cover less than 8,000 miles per year paying insurance costs based on the distance they cover.

A global positioning system installed in the car provides the insurer with information about risks taken by the driver, meaning that they can provide more accurate underwriting services.

Erik Nelsen, a spokesperson for Norwich Union, said: "There's a regular fee which you pay month-in, month-out, and that's to cover theft while your car's just in your driveway. The rest of it is a personal rate for how far you drive."

Meanwhile, Insurancewide has recently released advice for drivers taking to the winter roads, including listening to weather reports before setting out to make sure they are prepared for inclement conditions.

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