Car insurance by the kilometer: Dutch firm NN to sell prepaid auto coverage

Dutch insurer Nationale-Nederlanden (NN) teamed up with Vodafone to launch a new service called Bundelz - a prepaid car insurance. Bundelz provides car insurance for 1,000 kilometers at a time. After that distance, a new bundle is automatically purchased, AD reports.

Bundelz is intended for motorists who don't drive much - on average less than 100 kilometers per week and less than 7,500 kilometers per year. A bundle covering only liability insurance wil cost around 50 euros, and an all-risk bundle 70 euros. They remain valid for a year.

Along with the bundle, customers get a smart plug which they have to plug into the ODB port of their car, to keep track of kilometers driven. The diagnostic port also provides other information, but this will only be used for analyzes "to improve the product", according to NN and Vodafone.

Bundlez is still in its testing phase, with about 50 people using the product until next July. After the summer the product will be expanded to a thousand customers.