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New Technologies Could Reduce Car Insurance Premiums

An insurer is using the latest technology to help keep car insurance premiums affordable for young people.

The Co-operative Insurance said there has been an 11.5% jump in average motor insurance premiums for drivers aged under 25 years old.

It warned that if this upward trend continued, a generation of young drivers may not be able to afford car insurance.

As part of the group’s ongoing ‘2 Young 2 Die’ campaign, which it is carrying out in association with road safety charity Brake, the group is using black box technology to help young drivers manage their exposure to risk and help reduce the cost of their insurance.

Through the scheme, young drivers can qualify for reduced insurance premiums by answering a series of questions on the dangers of speeding, drink driving, driving while tired and not wearing a seat belt.

Once they have passed the online test, they can apply for “pay as you go” cover with the group.

The Co-operative Insurance will pay for a black box system, which uses GPS technology to calculate when a vehicle is used in off-peak, peak and super-peak traffic, to be installed in the driver’s car.

The insurance premiums are then calculated according to the actual risk the driver poses.

David Neave, director of general insurance at The Co-operative Insurance, said: “As long as young drivers are properly educated about the risks of the road and drive responsibly there is no reason why they should be priced out of the market.

“Knowledge is a powerful tool to cut the number of young driver deaths on the road, which currently run at a shocking 13 a week – the equivalent of an entire football team.”

Category: Car insurance

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