Black box technology improves young driver safety
The use of telematics technology to monitor the driving habits of young drivers has led to a 20 per cent fall in accidents, according to Co-operative Insurance.
This could lead to a reduction in the cost of motor insurance for young drivers, which will be welcome news for many young people who are currently unable to afford soaring premiums.
According to the AA British premium index, the average cost of car insurance for young people between the ages of 17 and 22 years is £2,481.
Young men, who are perceived to be a higher-risk group, pay £3,163 on average, while women typically pay £1,799.
The use of telematics technology by insurance companies is growing rapidly.
The system comprises in-car tracking equipment which monitors the driver’s performance.
Data on braking, acceleration, cornering, speed and what time of day the car is driven, is used to calculate insurance premiums.
Co-operative Insurance analysed the driving data of 10,000 customers between the ages of 17 to 25 insured on its Young Driver policy, which involves a telematics box being installed in the customer’s vehicle.
It found that these customers are 20 per cent less likely to be involved in an accident than customers with standard insurance polices.
The insurer also found that telematics customers have less serious, and therefore less expensive, accidents.
Amy Kilmartin at The Co-operative said: “We can see that motorists with this type of insurance are genuinely driving better than those without it.
“Young drivers tend to pay a lot for insurance because they have more road accidents than any other age group, but with these schemes if they prove they are good drivers, they could see major savings.”
Despite the high cost of motor insurance, recent figures show that the number of young uninsured drivers has fallen by half since 2008.
Figures issued by the Motor Insurers’ Bureau show that the number of 17 – 20 year olds uninsured has fallen from 250,000 to 125,000.