Insurance premiums based on driver behaviour are on the way, as Sat Nav maker TomTom has teamed up with insurance broker Motaquote, for the launch of Fair Pay Insurance, a product that they say rewards 'good' drivers.

Thomas Schmidt, Managing Director TomTom Business Solutions, believes this could be the first set in a revolution in the insurance industry. He says, "We offer a unique combination of navigation, traffic information and telematics, which opens up great opportunities for insurance companies to promote greener, safer driving and create a ground breaking portfolio of new insurance products."

Fair Pay Insurance gives drivers control over their own policy, by using driving ability and behaviour to allocate premiums, rather than so-called risk factors such as location, gender, and age or vehicle type.