An innovative new car insurance scheme for young drivers has been launched by Co-operative Insurance; part of the UK-based Co-operative Financial Services. This innovative policy through the use of innovative new technology utilising ‘Smartbox’ and satellite technology tracks how, and when, policyholders drive their car.
Once the insured vehicle is fitted with a Smartbox the insurance company can track what they call ‘safe driving parameters’ which include:
- the average speed of the vehicle on differing types of road
- how fast and hard the car accelerates or brakes
- what time of the day the car is driven
- how fast corners are taken
Utilising this data Co-operative Insurance will assess how the car is driven every ninety days. For policyholders taking out The Co-operative Young Driver Insurance these assessments may mean that the driver’s premium can be discounted but there will be no delay until renewal in applying any change. If the driver has earned a discount during the ninety day period they will get it there and then through a credit made to the policyholder's credit or debit card.
But there is a note of caution. If the driver operates the vehicle outside of the safe driving parameters determined by Co-operative Insurance then their premium may increase.
There is no upfront cost to equip the car with the Smartbox technology and with statistics showing that young drivers in the UK are three times as likely to be involved in an accident as an older driver this initiative is sure to appeal to young drivers seeking cover.
To read more about this story see Voice 71 due for publication in May.