Cheap car insurance for young drivers is becoming harder to come by, yet one insurer has thrown young drivers a lifeline with a new device that adjusts their car insurance rates in according with their motoring habits.
Like many car insurance companies, the Co-operative has begun to offer alternatives to more standard motor car insurance policies. The insurer has decided to employ ‘smart boxes’ as a means of transmitting a motorist’s driving data back to them and adjusting their rates according to how safely a given driver conducts certain manoeuvres such as cornering, acceleration, braking, and speed. The device also records the time of day the motorist spends time driving as well.
Results of the gathered data can be reviewed by the motorist before having it fed back through into their insurance premiums. This can result in younger drivers proving that while their age group is statistically dangerous, they buck the trend and are therefore deserving of cheaper rates.
The insurer assesses each driver’s motoring behaviour every 90 days. Good driving can lead to discounts of up to 11 per cent off the price of their yearly premium. However those motorists who consistently drive poorly could end up seeing their rates rise by as much as 15 per cent.
Every 45 days the insurer sends out an alert to drivers with cars fitted with the smart box in order to update them on their performance. This gives poor drivers an opportunity to improve whilst giving encouragement to safe and responsible ones to continue their good behaviour.
However drivers that need to know sooner than 45 days can access the insurer’s website for more detailed information. There motorists can get an up-to-the-minute report on their recorded motoring behaviour in order to keep on top of where they currently stand.