Fleets are to be offered an alternative to the typical annual fixed-price insurance deals currently on offer.

The new second-generation pay-as-you-drive insurance scheme will be offered to fleets later this year and will include added benefits, such as stolen vehicle tracking.It will be aimed at both individual grey fleet drivers and company fleets.

The arrival of Coverbox marks a return to the market for pay-as-you-drive insurance after Norwich Union withdrew its scheme in June last year.

The system works using GPS technology to monitor distance covered and the time a vehicle is in use, and charges according to mileage covered in off-peak (daytime), peak (rush hours) or super-peak (11pm-5am) periods.

The technology is provided by Cobra and is based on equipment specified as original equipment by several carmakers.

In virtually all cases, Coverbox can also track and locate stolen vehicles at no additional cost to the user.

“Coverbox is highly suitable and relevant for low or average mileage business drivers who own and run their own vehicle and need to manage and monitor costs on a monthly basis, or who particularly value the theft tracking and recovery element of Coverbox,” said Paul Stacy of Coverbox.

“We will also be introducing Coverbox Fleet, designed specifically for the higher mileage fleet business-user market. It will have all the features of the consumer-targeted Coverbox product.

“We are currently in negotiation with a number of fleet brokers and major insurers, and expect to launch the fleet product by the middle of 2009.

"This product addresses mileage issues, and builds in considerations for vehicle turnover and transfer of Coverbox GPS equipment between vehicles at time of replacement.”