The Co-operative Insurance has launched a new Young Driver motor insurance product 'pay how you drive', which calculates premiums based on the driving behaviors of 17 - 25 year olds, and is available for on average of £328.
The launch of the product follows as young drivers face higher motor insurance premiums, especially in the light of the recent European Court of Justice (ECJ) ruling that banned companies from using gender to set insurance premiums.
Under this program, the drivers will be assessed every 90 days based on four driving behaviors. If responsible driving behaviors are demonstrated they will receive a Safer Driving Discount (up to 11% of the annual premium).
According to the insurer, using the data transmitted from a Smartbox3 that will be fitted into the policyholder’s car, via satellite technology, will calculate the premiums based on the four behaviors like braking and acceleration; cornering; speed; and time of driving (e.g. day time, night time etc).
The product also allows customers to log into an online ‘Driving Dashboard’ to see how their driving has been rated against the four driving behaviors.
The Co-operative Insurance director of general insurance David Neave said by using the Smartbox telematics technology the company can actually see how a young driver behaves behind the wheel.
"This innovative technology will ensure that young drivers are given access to fairly priced motor insurance, with the added bonus that the better their driving, the bigger the Safer Driving Discount," Neave said.