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Pay as you drive policies were released several years back by Norwich Union and they proved popular with its clients, However, Norwich Union then withdrew from the merchandise since prices were found to be too high. Now it appears in the midst of the recessionary times of this season, the entire concept of pay as you push is being revived. A number of big insurance companies are planning to offer it as an alternative.

As an example; your mileage Monday to Friday between 7.30am to 9.30am and 4.30pm - 6.30pm (these are peak times but excluding bank holidays), and also evenings, nights and weekends (off peak). If after say 2 or 3 months you discover that your mileage is less than you initially anticipated, (by way of example, you no longer drive your spouse to work daily ), your monthly payments will drop, or if you paid in full in advance your overpayment will be reimbursed. However if your mileage was grater than you estimated, your obligations will increase accordingly.

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To operate the system your insurance company matches a global positioning system (GPS) into your car. The device is totally free, but you will be charged an installation fee of around 39 pounds. The insurance company is then able to use the GPS to monitor how far you are driving, and at what times of the day and charge you accordingly. This also has a welcome bi-product - your car today has theft tracking - and up to 98 per cent of stolen cars with GPS are retrieved within the day!

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Another potential benefit is available if you're a young driver. Some insurers are offering a youthful Driver Free Miles bonus. This is being given after a 3-month maintain free period. But the insurance company is very likely to charge young drivers additional for driving between 11.00pm and 6.00am that are called'super peak' periods as these times are usually accepted as representing the most dangerous times for young motorists to be on the street.

You may dislike the concept that your driving motions are being tracked from over - but it could save a lot of money! And remember, your precious car is now tracked if it had been stolen - and you are highly likely to get it back fast.

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Cheaper premiums ought to be greatly welcomed by younger drivers who frequently face huge auto insurance premiums. These pay as you go policies will help to save some serious cash. They also encourage them to leave the car at home late at night when they're at higher risk of having an accident.

Just like all kinds of insurance, it's crucial to shop around for the best deal. Always use the Internet to find an independent broker who can counsel you on the complete assortment of coverages available.