"pay As You Go" Car Insurance (norwich Union)

MACDONALDO67 · 14 March 2007 at 1:52PM

Been given a leaflet this morning at Manchester Piccadilly Station with ref "PHY1" to do a quote on a "pay as you go" car insurance for Norwich Union.

The Equipment to fit to the car costs £50 (one off fee) and working on the mileage myself and my wife do now, which is 3-4 thousand between us a year, is extremely beneficial.

Last year it was £234 for my wife and £391 for me. On the quotes given under this scheme my wife will pay £133 and for me £211 (estimated of course)

Sounds good but I am concerned. This system tracks where you go and your speed.

I called Norwich Union to ask about the premium. We all speed at some point but if the system records your speed, could Norwich Union put the premium up ? Could you incriminate yourself ? They say that the premium would not be affected and would only surrender details to the police if requested.

It does state in the small print that details are kept of your Journey so what happens if you have an accident in a 30 mph zone, not your fault but you were doing 37 mph say for eg ?

I have a bit of reading and investigation to do before I commit. Anyone else have any reservations about this scheme ?

JurekB · 14 March 2007 at 3:05PM

How spooky is this? I actually rang Norwich Union to get a quote this morning and have spent the rest of the morning trying to find some 'real peoples' opinions. I couldn't find a single thread here so after searching fruitlessly around the net I have decided to come back and start one and it's already been done!

Anyway.
My only real reservation is my possible mileage, I think I would do about 10000 a year which is above the 8000 they recommend. However upon working it out it seems pretty much all my mileage would be off-peak so potentially it still could save me money.

The quote I was given was for £10.28/month as a basic premium and my mileage would be added to that. From the figures I worked out I would then be paying a total of £23 which compared to a lot of the other quotes I've had is brilliant. Bear in mind I am looking to pay monthly regardless of who I go with.

In total it works out over the year as £367.55 which includes buying the black box and having it installed. So the set up charge is £114.55 and then 11 monthly payments of £10.28 and whatever your mileage is. I guess for a second year there is no set up charge as everything is already bought and installed.

The best other quote I've had is £347.49 which is a £69.49 deposit plus 10 x £30.58 installments giving a total of £375.29.

I'm not really sure where to go with this as I appear to be a bit of a borderline case and it could save me a few quid or it might not and end up costing me a bit more.

I'm also having problems finding the mileage rates which I can't find anywhere on the Norwich Union site as all I was quoted were the off peak rates which are:
30mph road = 3.5p/mile
40/50/60mph = 1.8p/mile
Dual carriageway = 0.7p/mile
Motorway = 0.5p/mile

Off peak hours are more or less 10am to midnight Monday to Friday and bank holidays.

I'm not too concerned about what the Police can get hold of as I guess they could probably work out how fast you were going by looking at the damage to the vehicles and skidmarks on the road. All this would do is save them a bit of legwork.

MACDONALDO67 · 14 March 2007 at 4:05PM

JurekB wrote: »

The quote I was given was for £10.28/month as a basic premium and my mileage would be added to that. From the figures I worked out I would then be paying a total of £23 which compared to a lot of the other quotes I've had is brilliant. Bear in mind I am looking to pay monthly regardless of who I go with.

In total it works out over the year as £367.55 which includes buying the black box and having it installed. So the set up charge is £114.55 and then 11 monthly payments of £10.28 and whatever your mileage is. I guess for a second year there is no set up charge as everything is already bought and installed.

30mph road = 3.5p/mile
40/50/60mph = 1.8p/mile
Dual carriageway = 0.7p/mile
Motorway = 0.5p/mile

Off peak hours are more or less 10am to midnight Monday to Friday and bank holidays.

I'm not too concerned about what the Police can get hold of as I guess they could probably work out how fast you were going by looking at the damage to the vehicles and skidmarks on the road. All this would do is save them a bit of legwork.

Just check your figures please because I might be missing something here.

If your monthly premium is £10.28 x 12 = £123.36 and a £114.55 set up charge, which includes the receiver being fitted comes to £237.91. What is missing for the £367.55 quote you have been given. I guess the less mileage you do the better, so if you use train and bus then this is the insurance for you. You can also do your own check on

"www.payasyoudriveinsurance.co.uk/pyh1"

and that will give you the cost of the insurance per mile, which also depends on what car you drive, engine size etc.

Point about the police... good point. Didn't think of that but if you had an accident and you were doing above the speed limit could the insurance refuse to pay out using the data as an excuse. Just an observation here.

JurekB · 14 March 2007 at 4:19PM

MACDONALDO67 wrote: »

Just check your figures please because I might be missing something here.

If your monthly premium is £10.28 x 12 = £123.36 and a £114.55 set up charge, which includes the receiver being fitted comes to £237.91. What is missing for the £367.55 quote you have been given. I guess the less mileage you do the better, so if you use train and bus then this is the insurance for you.

You've forgotten to include the mileage. £10.28 is my basic premium, this is what I pay regardless of mileage so if the car sits outside my house all month then that is all I pay. We worked it out that on average I would pay £23/month so £10.28 premium plus £12.72 mileage charge assuming my mileage estimate is accurate. It could be more or it could be less. I also believe that it's over 11 months not 12, the first month is included in the set up charge.

Another point worth noting is that although the policy starts immediately, someone still has to come and put the box in your car. Until this happens you are charged a set daily fee. I can't remember what this was as I told them I wouldn't need to use the car until the end of the month so they did agree to waive this for me.

Point about the police... good point. Didn't think of that but if you had an accident and you were doing above the speed limit could the insurance refuse to pay out using the data as an excuse. Just an observation here.

I don't know, probably something worth asking before signing up.

MACDONALDO67 · 14 March 2007 at 8:41PM

Thanks for info. I understand now. I have since contacted them and confirmed my base premium is £9.40 p/m but with the mileage I will be doing will be £13.10. Obviously if you are doing 10,000 a year then it will cost you more.

Mine comes to £261.73 but £50 of that is the installation of device so all in all it's £211.00 p/y which is a big saving from £340.00 on my renewal and £391.00 what I paid last year. :beer: :j

ArchieB_2 · 15 March 2007 at 10:28AM

At what point will NU release details to the police - if you were involved in an accident, if a policemen thought he saw you speeding? I would want to know in exactly what circumstances NU would release details.

Even if is in the event of an accident, just because you were doing 75mph on the motorway and involved in a collision, would this put you in a poor position in terms of determining fault?? Speed kills and all that, well, movement kills more accurately but that's not as useful as a headline.

Chall · 15 March 2007 at 10:51AM

It's not the speed that kills...it's the sudden stop

Wouldn't be trusting this offer if I was any of you, looks too closely linked to the governments road charging policy which I don't support, another of those green policies to combat global warming that isn't caused by human CO2; also a friend of mine works for NU and wouldn't ever recommend them.

Vindiesel · 15 March 2007 at 11:25AM

Chall wrote: »

another of those green policies to combat global warming that isn't caused by human CO2;

Hope I haven't got the wrong end of the stick here..but global warming IS casued by human CO2 emissions...how else do you explain the rise in global temperatures and the exponential rise in the human population and out-put of CO2 and other greenhouse emissions, most notably methane?
Is this mere coincidence? Or is it all of those volcanoes that go off every year and release sulphur dioxide that no-one knows about?

I appreciate this isn't the right forum, but views such as the one above are dangerous and ill-informed.

nealnomoney · 15 March 2007 at 11:34AM

i tried to get a quote on this a few months back and it wasnt available in NI. Any news on whether it is now or not?

7Stone4 · 15 March 2007 at 11:58AM

I don't believe in Global Warming.

The temperture rise is not an effect of CO2 emmisions.

Temperture started to rise first before the c02 did, not the other way round. History has shown that tempertature change is a part of the earths cycle and will rise and fall.

The way people react when you say you dont believe global warming is alarming!

There was a good channel 4 program about it a while ago i think

nealnomoney · 15 March 2007 at 11:59AM

i tried to get a quote on this a few months back and it wasnt available in NI. Any news on whether it is now or not? Thanks

"pay As You Go" Car Insurance (norwich Union)

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