Young Drivers Can Lower Their Auto Insurance Rates By Using A Smartbox

A program launched in the UK today enables drivers age 17 to 25 to save over £300 on their auto insurance with the carrier Co-Operative if they use a Smartbox in their vehicles. This small box is fitted to the automobile and monitors the driving skills of the young operator.

Good driving habits, as measured by various criteria, will result in cheaper insurance premiums.

During the past year, auto insurance premiums for drivers in this age group have increased 58 percent on average. A 17 to 25 year-old driver now pays more than £2,200 in car insurance premiums. Costs are likely to increase further due to a recent European Court of Justice ruling that gender may not be used to establish premiums.

By adhering to criteria like not driving between 11 PM and 6 AM, young drivers can lower insurance costs.

Speed, cornering, acceleration, and braking are the other criteria assessed. The Smartbox captures the data and transmits it to the insurance company.

Good drivers will receive either a refund or discounted future payments. Bad drivers will face an increase in insurance costs, up to 20 percent of their initial payment.

Co-operative Insurance developed the program to prevent a generation of drivers from being “priced out of car ownership,” says Co-operative Director of General Insurance David Neave. The company also wants to squash the myth that every young driver is a bad driver.

Co-operative will actually cancel a policy when a driver exceeds the speed limit and receives a court-imposed driving ban.

Young drivers can participate in the program even if they are still paying off their car loans. By driving more safely, these individuals will reduce the number of vehicle-related accidents and decrease overall car insurance rates.

The Smartbox is the size of an MP3 player and can be fitted in several places within the vehicle.