Young Drivers Finding Relief in Cost of Car Insurance with Telematics Cover

young drivers pay less with telematics car coverYoung drivers are still paying more for car insurance on average, compared with any other driving group. They are still the riskiest drivers on the road and insurers cannot overlook that fact. And they are still more likely to have a car crash within six months of obtaining their driver licence than any other group. But, new technology is helping to reverse the trend, especially when it comes to the cost of their car cover.

Black box technology, or telematics car insurance, is helping young drivers fight the high cost of car cover by rewarding the group when they demonstrate safe handling of their cars. In some cases, according to the latest figures, young drivers have been able to cut their insurance cost by more than 5% in the year to August.

Telematics car insurance involves a small device which is installed in the interior of the insured car. This device monitors driving habits like speeding, braking, and cornering. It also tracks the time of day or night the car is driven. All this data is analysed by insurers and used to determine the possibility of extending a reward to a driver or not. Rewards are in the form of discounts applied to future monthly car insurance premium costs.

Ian Hughes, chief executive of Consumer Intelligence, commented on the new technology and the way in which it was being used by insurers, saying:

“Older drivers are to an extent helping fund premium reductions for younger motorists and need to ensure they are receiving the best value for money from their insurer.”