Cheap car insurance for young drivers may be a possibility if they agree to have their vehicles fitted with a technological spy to monitor their driving patterns.
The device uses GPS tracking technology in order to record the motoring habits of the driver. Firms that use the system could offer a discount of anywhere from 15 to 17 per cent on a young driver’s motor car insurance. The system works by collecting information on how often the driver uses their car, how quickly and how far they travel, and also such information as their ability to corner safely and whether or not they exceed speed limits or brake or accelerate in an appropriate manner.
Users of the new GPS-like box need to give their car insurance companies an estimate of how much they plan to drive throughout the coming year, though there is no limitation on how many miles a driver can put on their vehicle in any given 12 months. Those drivers who exceed their initial prediction will be expected to pay a one-off charge as their premiums rise slightly.
For one young driver, the box has turned out to be a positive step. Alex Crooks has stated that his car insurance premiums have been halved through the use of the device.
The 23 year old’s original quote for his Ford Fiesta was approximately £1,000, though he did have a five-year driving history. Alex stated that in a typical year he only puts about 3,000 miles on his car. The majority of those miles occur during daytime hours when rates are cheaper as well.
Alex stated that the tracker box installed in his car has reduced his driving costs significantly since his motoring behaviour has been demonstrated as being low-risk.