Four PAYD insurers named

Co-operative, Allianz, Equity Red Star and Groupama will revive the pay-as-you-drive (PAYD) market when they offer policies to consumers from January next year.

Two more insurers, yet to be named, will also enter the market.

Technology company Wunelli will use its Coverbox product to pass information to insurers tracking statistics such as time, duration and distance driven by a motorist.

Insurers will then use the data to renegotiate premiums.

Paul Stacy, Wunelli’s managing director, said: “We have confirmed four of the six panel members, but the remaining two places will be filled by insurers that can provide competitive pricing and cover for risks that our existing insurers may not provide.

“This means Coverbox will offer a wide underwriting footprint and be able to provide competitive pay-as-you-drive insurance for virtually every type of driver. Consumers will be able to choose insurer by brand or price.

“It is a tremendously strong panel, and underlines how seriously the Coverbox pay-as-you-drive proposition is being taken.

“These are insurers that are big, established and with strong reputations.”

Coverbox’s device will cost about £39 to fit and should take technicians 20 or so minutes to install. The device can also track stolen cars.

Norwich Union suspended its PAYD scheme earlier this year after failing to hit its target of 100,000 customers.

Coverbox said it hoped the UK market would follow Italy and Spain, where PAYD had been a huge success.