Car insurance groups turn to tech for young driver discounts

Cheap car insurance for young drivers can be exceedingly hard to obtain due to their perceived exuberance and relative inexperience behind the wheel.  However many car insurance groups are turning to technological gadgets to help lower costs for their youngest customers.

Car insurance companies with an eye towards the future are offering discount car insurance to young drivers if they agree to install a driving monitor that observes their motoring behaviour.  The devices use telematics technology similar to a GPS unit to gather information.

Mounted under the dashboard, these mobile phone sized devices keep track of how fast a motorist drives and whether or not they are exceeding the local speed limit.  The little box also has an accelerometer installed in order to keep track of how forcefully a motorist accelerates, brakes, and takes corners.

Once all this data is gathered, it is transmitted to the customer’s insurer for analysis.   The insurer can then determine if a motorist deserves to be paying less in insurance for driving carefully and in a responsible manner.

The devices also enable the use of pay as you go insurance since they can monitor the distance traveled.  Additionally the telematics boxes can pull double duty as tracking devices in the event of a car theft.

Several car insurance companies have adopted the boxes for general use.  One insurer has a pay as you go package that awards responsible drivers additional mileage for free on a monthly basis.  Another insurer provides comprehensive cover to younger motorists as long as they restrict their driving time between the hours of 5am to 11pm every day.  Those who decide to drive after curfew are charged a £100 fee for every night they do so.

Some insurers include the price of the telematics box with customers’ premiums while others charge an additional fee for the equipment.

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