A GROUNDBREAKING insurance product has been launched which actually rewards young motorists for safe driving through discounts.
This is the first time in UK Insurance history that safe young drivers will not have to bear the brunt of the burden racked up by reckless racers.
The ‘pay how you drive’ policy by The Co-operative Insurance will be on average £328 cheaper than competitor prices, and over three quarters (82%) of young drivers could make a saving.
The launch comes as young drivers face higher motor insurance premiums, especially in the light of the recent European Court of Justice ruling that banned companies from using gender to set insurance premiums.
It is a fact that many young people are simply being priced out of owning a car due to the escalating cost of motor insurance.
The Co-operative states that to ensure we do not end up with a generation eliminated from car ownership there is now a chance for many young people to prove themselves as responsible drivers.
The system features a smartbox fitted to the car and drivers will be assessed every 90 days based on four driving behaviours.
If responsible driving is demonstrated they will receive a discount of up to 11% of the annual premium.
Using data transmitted via satellite technology, premiums are calculated on braking and acceleration, cornering, speed and time of driving.
The new system is based on research that an 18 year old driver in the UK is more than three times as likely to be involved in a crash as a 48 year old.
Road safety charity Brake has welcomed this new approach to encouraging young drivers to keep themselves and others safe and my view is that anything that can cut the toll of deaths and injuries among young drivers is a bonus.