MADRID, Feb 6 (Reuters) - Spain's Telefonica and insurer Generali have launched a car-tracking device designed to reduce the cost of insurance by monitoring driving habits. The product, called Pay As You Drive, is part of Telefonica's efforts to expand into alternative technologies, particularly machine-to-machine (M2M) services for the healthcare and automotive sectors. The device will monitor how many miles customers drive, whether they stick to speed limits, what time of day they usually drive and where they go.