There is new hope for those looking for discount car insurance for young drivers, due to one direct car insurance provider announcing it will be adopting telematics technology in an effort to control the cost of motoring.
Direct Line is one of a number of car insurance companies that have decided to make it easier for younger drivers to obtain cheaper car insurance through the launch of a pilot programme in which the ‘black box’ technology will be used to evaluate drivers’ behaviour behind the wheel. Partnered with Tracker, a fleet telematics expert, the goal of the new offering is to provide cheaper rates by monitoring driving habits and rewarding responsible drivers with less expensive insurance premiums.
The technology uses elements of satnav tech, as the black boxes fitted to the cars will gather data such as to how and when the car is driven before sending the data on for analysis via satellite. Drivers are then rewarded with less expensive insurance for driving safely and responsibly – or penalised for driving carelessly.
More than two out of every three younger drivers could benefit from having their car fitted with a telematics device, according to research estimates. Annual premium prices could drop as much as 22 per cent after 12 months, which could potentially lead to huge savings for younger motorists.
Direct Line’s motor underwriting and pricing director, Andy Goldby, commented on the news by stating that the insurer is committed to providing support to younger drivers, stating that analysing motorist attitudes and behaviours will provide the insurer with the data they need in order to put together long term and robust consumer offerings. Mr Goldby also said that Direct Line is taking a measured approach in order to avoid any rash decisions based on the changing marketplace and is instead enveavouring to ‘get this right.’