The Co-op has launched an insurance scheme whereby young drivers can benefit from lower premiums if they drive safely. The policy will be on average £328 cheaper than competing prices and around 80% of young drivers could benefit.
How it works is that the driver’s car has a smartbox fitted. The box transmits data about braking and acceleration, speed, cornering, and time of driving (day or night), and every 90 days this is evaluated. If they have been driving responsibly they will get up to 11% discount of the annual premium.
If they drive consistently badly then they could end up paying up to 15% more of their annual premium. It isn’t clear if this applies every 90 days or just annually.
It sounds like a great idea. So good, in fact, that it could be a way of reducing road deaths if the government had the guts to make it mandatory.
Find out more at the Co-op Insurance site here.