Young drivers made safer by satellite boxes
Car insurance that is based on satellite technology has resulted in a fall of as much as 20% in crashes involving young drivers, one of the biggest insurance companies in the whole of the United Kingdom claims.
Black box insurance, also known as telematics, involves the use of in-car tracking equipment in order to monitor driving behaviour such as the likes of acceleration, braking, cornering, and speed and at what time of day the vehicle is being driven. That information is then used in order to calculate insurance premiums; while the result has no effect on the price of an extended auto warranty, it can and does affect the premium: the better the driving, the lower the cost of the premium.
The driving habits of around 10,000 customers of telematics insurance aged between 17 and 25 in the United Kingdom have been analysed by Co-Operative Insurance, which found that they were 20% less likely to be involved in a car crash than those who had ordinary insurance. Telematics customers also tend to have less serious accidents when they do occur, with a typical claim being as much as 30% less than is the case with standard customers.
Young drivers have been subjected to swinging increases in the cost of car insurance over the course of the last two years, with premiums for men aged between 17 and 22 having gone up by 40%, according to the AA.
published: 10/04/2012 14:00:00