Black box technology – the system which monitors the driving of young motorists – has cut crashes by 20%, according to Co-op Insurance (Telegraph).
A number of insurance companies have brought in ‘black box’ telematics systems, which keep track of speed and driving behaviour, with the promise of reduced premiums for good driving.
Co-op Insurance analysed the driving habits of 10,000 young drivers whose vehicles have been fitted with the new technology, and found that they were 20% less likely to have a crash than those without the system. Customers with the system also had less serious accidents, with a typical claim being 30% lower than other customers.
The Telegraph report highlights AA figures which show how on average insurance premiums for men aged 40 to 49 have gone up by 6% since April 2010, but the increase for those aged 17 to 22 is 40%. Those aged 23 to 29 have seen increases of 35%.
But young people with black boxes can see their premiums fall dramatically. According to renewal figures from ‘insurethebox’, more than two thirds of young drivers saw their annual premiums fall by as much as 22% after driving with a black box installed for more than a year.
The box measures motorists’ mileage, the time they drive, and how they drive. They are then penalised for acts such as sudden braking or cornering.
According to the Telegraph, the concept is simple: by encouraging careful driving, some motorists will see their premiums fall, while those who do not drive as safely will see the cost increase.
Click here to read the full Telegraph report.