More Th>n, the direct insurance arm of Royal & Sun Alliance, is to offer motorists a telematics car insurance policy which uses GPS technology to help people drive in a greener way and save money on fuel.
The black box system monitors driver behaviour and offers feedback to help motorists drive more efficiently. The system will measure behaviours such as the number of short journeys taken, excessive speed, over-revving, over-acceleration, and idle time leaving the motor running.
The new eco product will be launched as a pilot in the last quarter of this year with up to 1000 free-of charge boxes available in 2007. If successful, More Th>n will look to expand the scheme in 2008.
The system is being made available as part of a new multi-company camapign - 'We're in this together' - aimed at encouraging individual action on climate change.
Under the programme, More Th>n has also committed to offer drivers an 'eco car' discount of up to 15 per cent and free carbon offsetting for first 3000 miles.
The company says it will shortly offer a financial incentive to home insurance customers who have taken measures to reduce their energy usage.
Recent research by RS&A suggests that over 75% of consumers think insurers should take climate change into account in their operation, and the same number say that an insurer’s business practices and environmental policies are important.
Other companies backing the Witt campaign include B& Q, Barclaycard, British Gas, Marks & Spencer, 02, Sky and Tesco.