Rising fuel price is likely to lead to the adoption of telematics-based insurance products, it has been predicted.

Making the prediction, More Than said that car insurance policies that encourage greater caution among drivers by lowering bills of the more careful ones will gain currency as rising fuel costs force drivers to change their driving behaviour.

Green Wheels, a policy that allows drivers to access reports analysing their driving style on 'eco-driving' criteria, was recently launched by the insurer.

More Than is the only insurer currently operating Telematics-based service following the decision by Norwich Union to discontinue its Pay As You Drive policy.

Based on the service drivers agree to have a box fitted that monitors their driving, with the aim of lowering the premiums for those who keep within agreed mileage limits or drive within certain period of time.

More Than also offers Drive Time policy, which keeps the premiums of young people lower provided they avoid driving late at night.

Motorists who drive without over-revving their engines, accelerating or braking sharply, going too fast are given a high eco-rating of A. Those who drive fast get a G rating.

But the insurer said the data may, for now, not be used as a yardstick for lowering premiums.