Norwich Union today announced that they are to introduce a ‘pay-as-you-drive’ car insurance policy, charging motorists by measures including distance driven and the type of road used.

Commenting, Liberal Democrat Shadow Transport Secretary, Alistair Carmichael MP, said:

“This technology sounds remarkably similar to that needed for a national road user pricing scheme, in which drivers would also be charged according to when and where they drive.

“The Government’s argument that the technology for such a scheme is over a decade away is clearly nonsense. It is already working here in a commercial setting.

“Douglas Alexander should acknowledge this by bringing forward proposals to introduce road pricing more quickly, beginning with a pilot scheme which builds on the Norwich Union project.”