An innovative new car insurance scheme for young drivers has been launched by Co-operative Insurance today.
The 'pay how you drive' insurance scheme uses a 'smartbox' and satellite technology to track how, and when, policyholders drive their car. It monitors acceleration, braking, cornering and speed, as well as times of journeys – because young drivers are more likely to have accidents at night.
Assessments are made every 90 days, with discounts of up to 11% off the annual premium given to those who've behaved responsibly. Co-operative Insurance reckons 52% of young drivers could save an average of £328 annually.
If the 'smartbox' reports dubious driving, with speed limits broken and corners taken too sharply, premiums could increase by 15%. If speed limits are exceeded to the extent that a court would hand down a ban to the driver, the insurance policy would be cancelled.
There is no upfront cost in equipping the car with the palm-sized smartbox techonology which is similar to the system used by Insurethebox which offers up to 100 miles of free insurance each month if policy holders have performed well across ten different measures.
Policyholders using both systems are able to view to an online 'driving dashboard' to see how they are performing.
Risk and cost
Young drivers are three times as likely to be involved in an accident as a 48-year-old, and have seen premiums rocket almost out of control.
A report by the Transport Select Committee this week blamed the rise in fraudulent personal injury claims for the sharp increases in insurance costs.
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