New Car Insurance Policy Launched To Help Young Drivers Save Money

Car Finance Calculator

Thu, 17 Mar 2011

An innovative new car insurance scheme for young motorists has been launched by Co-operative Insurance, which it claims could save some drivers an average of £328 annually.

The 'pay how you drive' insurance policy 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 those who've behaved responsibly offered discounts of up to 11 per cent off their annual premium.

However, if the 'smartbox' reports dubious driving, with speed limits broken and corners taken too sharply, premiums could increase by 15 per cent. If speed limits are exceeded to the extent that a court would issue a ban to the driver, the insurance policy would be cancelled altogether.

Policyholders can monitor their own performance through an online 'driving dashboard'.

According to Co-operative Insurance, there is no upfront cost in equipping the car with the palm-sized smartbox techonology, which is similar to the system used by Insurethebox.