Insurance plan 'could be road pricing model'

A newly-developed car insurance programme is being suggested as a possible basis for a national road pricing scheme.

The Norwich Union pay-as-you-drive scheme, which has been targeted in the first instance at young motorists aged 18-21, uses a GPS tracking device inside the car, with the information transmitted back to Norwich Union via a mobile phone network. Its introduction follows a successful nationwide pilot undertaken last year involving 5,000 volunteers of all ages.

The tariffs are...

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