Norwich Union (NU) has signed a contract with Trafficmaster, the satellite navigation equipment maker, for the provision of a further 35,000 telematics 'black boxes'.

The boxes are at the heart of NU's 'pay as you drive' insurance programme and record the time, distance and location of a vehicle's journeys.

NU is conducting a pilot to investigate motorists' preference for a usage-based motor insurance product.

NU Insurance chief executive Simon Machell said: “By increasing the number of boxes in our pilot, we will have access to additional data to help ensure that any future 'pay as you drive' insurance propositions are best suited to British motorists."

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