Although the scheme is available to all drivers, David Ross, senior relations manager at Norwich Union, suggested it was geared mainly at younger people.
A sensor under the dashboard of a driver’s car tracks the time of day the vehicle is in use.
For 18 to 23-year-olds, off-peak hours are between 06:00 BST and 23:00 BST and drivers are charged just five pence per mile.
But on-peak hours between 23:00 BST and 06:00 BST will cost drivers £1 per mile, in a move which could cut the number of unnecessary late night drivers on the roads.
“Driving at night time is statistically significantly more dangerous,” said Ross. “Your bill is a bit like a phone bill. It will give you a breakdown of where you drove, how many miles you drove and what time of day.”
“We’ve seen people save a thousand pounds. It’s a big incentive and there are potentially big savings to be made from choosing not to drive at night. You’re not effectively curfewed, we’re not saying you can’t drive at night, we’re just saying you can save if you don’t.”
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