'Big Brother' Car Cover Suspended

An innovative new form of car insurance cover has been withdrawn from the market, the BBC reports.

Norwich Union, who launched its "pay as you drive" policy just two years ago, has now suspended the insurance due to a lack of interest from customers. The firm also said that an unexpectedly slow take-up of the technology necessary to take out the cover among car manufacturers contributed to its decision.

"Pay as you drive" worked by installing a black box-style device into each customer's car, in order for Norwich Union to track the vehicle's movements. Then, if the motorist avoided travelling at the more risky times of day - such as during rush hour and at night - money would be saved on premiums.

The disparity between these payments could be very big, as Norwich Union aimed to regulate when drivers used their car: for example, younger drivers could be charged as little as 5p per mile if they drove at the "right" times, but as much as £1 if they did not do so.

Speaking to the broadcaster, Graeme Trudgill at the British Insurance Brokers' Association said that the insurer's "Big Brother attitude" had put customers off the policy. "They don't like the fact that someone is going to know exactly where they're going, at what time and at what speed as well," he added.

Norwich Union refused to reveal the exact level of customer take-up of the policy, but confirmed that it was "not less than 10,000" in total. Originally, the firm aimed to attract 100,000 people to "pay as you drive".