The Pay As You Drive insurance was launched in October 2006 and was aimed at two different age groups –young drivers aged 18 to 23, and motorists aged 24 to 65.

The insurance aims to provide tailored insurance dependant on how often motorists drive amd how far. Tariffs on the policy start at less than 1p per mile for drivers over 24, and less than 5p per mile for young drivers.

In addition to the usage-based tariff, the premium also includes a fixed monthly fee to cover risks such as fire and theft. Both groups of motorists are expected to be able to save up to one-third on their motor insurance premiums, and can now save a further 10 per cent by buying online.

Iain Napier, director of Pay As You Drive insurance said, Pay As You Drive insurance offers motorists greater choice, control and flexibility in their motor premiums.

“We have received terrific feedback and take-up of the policy since we launched three months ago and buying online is just the latest step for Pay As You Drive insurance.”

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