Motorists aged 25 or under are being offered the opportunity to slash their premiums by as much as £300 as the result of a new policy.
Drivers would have their motoring monitored by the use of an in-car technology akin to a “black box” that can transmit data to their insurer. A variety of statistics such as the usual time of day the car is driven and data concerning cornering, speed, acceleration and braking can be recorded.
The scheme, offered by Co-operative Insurance, would mean a policy recalculation every ninety days. Motorists deemed to be driving sufficiently carefully could see a fall in their premiums by over ten per cent. However, reckless motoring could see their premiums soar.
A “traffic light” scale can be observed by logging on to a “driving dashboard” and viewing the various measurements recorded with red lights showing areas for improvement and green lights showing good driving habits.
David Neave, director of general insurance at Co-operative Insurance, said: “It is a fact that many young people are simply being priced out of owning a car due to the escalating cost of motor insurance for young drivers. To ensure we do not end up with an entire generation priced out of car ownership we are giving them a chance to prove themselves as responsible drivers, and dispel the assumption that all young drivers will drive badly and have accidents.”