Dated: 17 March 2011
Under 25s Can Save on their Insurance Premiums With Black Box
It is not a secret that the insurance premiums charged to drivers under the age of 25 are a lot higher than those charged to older and therefore it is assumed more mature drivers.
Unfortunately, for the under 25s their high premiums come down to the old problem of a few bad apples spoiling the rest of the barrel... that might be a mix of metaphors, but the point still stands.
This could change with Co-operative Insurance announcing that they set to launch a policy which will monitor the driving style of the policy holder.
For those who are deemed to drive safely, they will be rewarded with lower Premiums. Of course with every Ying there has to be a Yang – those who do not drive safely will see their premiums rise.
The driving style will be monitored by the installing of a “little black box” which will assess their braking, general speed, cornering and if they drive mainly drive during the night or day. Every 90 days this information will be used to recalculate the driver's policy.
Car owners with the black box installed will have to take responsibility for their own vehicle as the box is unable to tell who is driving. So if a different driver uses the car and spends the day driving erratically, this could be severely detrimental to the insurance policy of the car’s owner.
The hope from the Co-operative is that around 82% of car owners who take up this policy will be quoted less than their initial renewal price.
On the UK’s version of Autblog.com, even rival car insurance companies have come out praising the scheme.
Andy Haynes, joint CEO of insurethebox was quoted on the popular automotive blog as saying, “it is great news for all of us trying to sell the telematics proposition that a high-profile insurer such as the Co-operative has taken this decision as it will help the idea to gain even more momentum.
"Above all, it is good news for motorists, especially anyone below the age of 21, because our experience shows that box technology really does slash the cost of premiums and encourage safer driving."