Young drivers - who can find themselves paying 10 times the premiums of older people - are struggling to afford the cost of motoring. Insurance premiums for even the most basic car can cost anything between £1,500 and £2,000 a year for the under 25s.
To this end, Norwich Union earlier this year introduced a PAYD pilot scheme for 1,500 18 to 21-year-olds which it claims could cut premiums for the safest customers by up to 30% - but charge £1 a mile for the riskiest journeys.
Customers are able to reduce their premiums to more affordable levels by driving mainly during "off peak" times between 6am and 11pm rather than during "peak times" outside these hours when statistics for the 18-21 age bracket show they are at much greater risk of being killed or seriously injured in a car accident.
Norwich Union still uses the traditional rating data - gender,, postcode, accident record and type of car - and sets tariffs per mile for each driver based on this information. The best young drivers pay for their insurance at the rate of 6p per mile per day, with the first 100 miles of daytime motoring coming in free.
Norwich Union's initiative is showing the way ahead for motor insurance and has won the support of groups such as the AA and insurance brokers. Commenting on the young driver pilot, Richard Mason, director of internet-based insuresupermarket.com, says: "This move by Norwich Union is a bold innovation and a great idea to encourage younger people to be safer drivers, while also delivering lower-cost insurance.
"We see first hand on a daily basis just how expensive the quotes supplied by major insurance brands are to these young drivers - literally running into thousands of pounds, so we fully support any initiatives that can help bring these costs down.
"The major reason why one in 20 drivers in the UK has no insurance is down to cost."
But it's not just motoring insurance that sets people's financial thermometer boiling. Insurance premiums across the board have gone through the roof, and many households - either because of cost or because they are situated in a flood-risk area - are no longer adequately covered for buildings or contents if the worst should happen.
Would a PAYD approach to all insurance be the answer?
It is a move that would meet the approval of Linda. "I think it would a good idea if you could only pay for what you used.
"If I am a safe driver or don't drive many miles, why should I have to pay for someone who is reckless? If I go on holiday, why should I have to pay for all sorts of add-ons I don't want?"
