‘Pay-as-you-drive’ insurance policies are making a comeback in the UK according to car insurance provider, Coverbox.

The use of a ‘black box’ in-car tracker to measure mileage is not new in the UK insurance market, however, its slow acceptance in the wider market forced pioneer Norwich Union to halt its policy last year.

Insurer More Than continues to provide a similar policy for young drivers-Drive Time, however, consumers now have limited choice because there is currently a lack of competition in the market.

Coverbox says that the new technology with the added bonus of theft-tracking will allow insurers to offer more policy choice.

Coverbox also says consumers can log onto their website and browse through a selection of quotes from insurers including The Co-operative, Allianz Insurance, Equity Red Star and Groupama Insurances offering the product.

Sandy Dunn, chairman of Wunelli, the company behind Coverbox, said: “We believe both the consumer and the motor industry are now truly ready for pay-as-you-drive insurance.

“Others have tried before with older generation technology but our solution is new-generation, highly-capable and based on integrated security solutions specified and proven by the leading car manufacturers in Europe and Japan.”

The cost of insurance is calculated based on the driving habits of the customer. The fitted box to their car will work out the actual mileage for billing.