More 'black box' schemes needed to drive down insurance for young people
- Co-operative Insurance will highlight benefits of telematics
insurance to the Prime Minister tomorrow (14 February)
- Young drivers are on target to receive £20 million in discounts
through Co-operative's scheme*
- Scheme has lead to a 34% reduction in the cost of car crashes**The Co-operative Insurance will share learnings from its pioneering 'Young Driver' insurance scheme with Prime Minister David Cameron today (14 February).
The Co-operative's Director of General Insurance David Neave will join the Association of British Insurers (ABI) along with leading figures from the insurance industry and consumer groups at Number 10 to discuss ways to tackle the cost of car insurance.
The Co-operative was the first major insurer to launch a 'black box' insurance product for young drivers and will tell the Prime Minister how it is already bringing down the cost of car insurance for its customers.
New data released today also shows that young motorists with a box are less likely to be involved in a car crash than those without the box, and the accidents they do have are less serious leading to a reduction of more than a third in the cost of accidents.
More than 12,000 17 to 25 years olds are already signed up to the product, which measures 'how' a motorist drives before rewarding cash-back for good driving.
Around 90% of young drivers have seen hundreds of pounds shaved off their premiums in exchange for sticking to speed limits, braking and cornering carefully and limiting night time driving. The insurer estimates that £20 million will be given back to customers in discounts for good driving over the next three years.
The insurance company will also highlight the impact these schemes could have in making Britain's roads and communities safer if black box or 'telematics' technology was adopted by insurers on a wider scale.
David Neave said: "The cost of insurance has hit an all time high, especially for young drivers who feel that they are being priced off the road. Currently many young motorists who drive safely are picking up the tab for the ones that drive recklessly. However, the black box allows people to pay a fair and personalised price for their cover, determined by how well they drive.
"We can also see that having a box installed leads to safer driving as already fewer car crashes are taking place among motorists who have them.
"It would be great to see more insurers follow suit and offer similar schemes, as telematics has a major role to play in cutting the cost of insurance and avoiding creating an uninsurable generation who cannot afford to drive."
* £20 million in discounts pledged by The Co-operative in its Ethical Operating Plan 2012
** There has been a 34% reduction in the cost of car crashes among Young Driver customers compared to young drivers with standard motor insurance
Senior Press Officer
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