Insurance company Nationale-Nederlanden and phone firm Vodafone have launched a pilot scheme, Bundelz, which allows owners pay for insurance on a per-kilometre basis.

Bundelz is designed for those who drive about 100 kilometres a week or not more than 7,500 kilometres a year, the company said at its launch on Tuesday.

The new deal means car owners pay €50 (only for WA – third party liability auto insurance) or €70 which includes collision insurance, for every thousand kilometres – a bundle – they drive in a year. Clients can buy another batch when the first is used up. Each 1,000-kilometer deal is valid for a year and the car is insured when not in use as well.

Bundelz is now seeking 50 clients for the pilot project which will be extended to 1,000 car owners in the autumn.

At the launch, Nationale-Nederlanden director Kokke van der Werf said ‘consumers have been asking to pay for the use and not the possession of the car for some time now’.

There are no premium differentials for place of residence, type of car of age of the driver. Nor are there differences in premiums for accident-free or no-claims clients. The €70 bundle carries a €500 own-risk charge in the event of damage.

The pilot scheme will run  for at least a year and is open to all car owners at least 30 years old with a minimum of eight accident-free years. The car itself must cost less than €30,000.