Linda,
You are right, Norwich Union have decided (17 June 2008) to cancel their
Pay As You Drive insurance policies since there were not many interests for this type of insurance amongst drivers.
The pay as you drive insurance from Norwich Union is different from the pay as you go insurance from eCar though. You were charged by the number of miles you were doing and the time of the day you were driving as well as the different routes you were taking by Norwich Union, so the less miles you did, the less you would eventually pay. However eCar's pay as you go policy allows you to take an insurance cover renewable on a monthly basis for a fixed price. So if you do 20 miles the 1st month and 50 miles the second month, you will still pay the same amount at the end of first and second month. If you don't want to be tied up to a yearly policy, then eCar's pay as you go policy is perfect for you.
Since eCar's insurance is different from that of Norwich Union, it does not in any way affect theirs and they have no plans to cancel theirs for the time being.