The Co-operative doubles discount on young driver scheme to combat gender directive price rises
- Young female motorists who drive safely can beat the price hikes through use of telematics *
- The Co-operative Insurance doubles ‘cash back’ on Young Driver scheme **
- 65% of young drivers are worried that the cost of their insurance will increase after 21 December ***
The Co-operative Insurance has thrown a lifeline to young female motorists who are likely to see their insurance increase as a result of the Gender Directive, by doubling the discount they can get through the Young Driver telematics scheme.
New research from The Co-operative shows that the Gender Directive is a concern amongst young people, with 65% of 18 to 24 year olds worried that their insurance will go up as a result.
To combat this, The Co-operative will increase the discount for safe drivers to 20% for those who take out or renew a Young Driver policy after 21 December. This means that if they drive safely, females should not be left out of pocket, as the increase in discount will help to offset any rise in their premium. ****
The Co-operative’s Head of Motor Insurance, Grant Mitchell, explains: “Young drivers are already paying above the odd for their car insurance, and it is unfortunate that the new law is likely to push prices up for young females even more.
“We know that young people are worried about what the Gender Directive means for their premium so we’ve increased the discount that safe drivers can achieve to help them avoid any significant increase to the cost of their insurance.”
To qualify for the maximum discount, people must demonstrate safe driving in a number of categories including speed, cornering, braking and acceleration.
Although people of both genders will be entitled to the maximum discount, the Co-operative expects that more women than men will qualify, as its data proves that young females tend to drive more safely. It shows that whilst 60% of 17 and 18 year old females currently get the full discount, just 31% of males of the same age do. *****
As well as reducing the cost of insurance, The Young Driver scheme is also helping to improve road safety, as The Co-operative has already seen car crashes drop by a fifth among users. ****** Around 30,000 young motorists are already signed up to the scheme.
* Statement applies to customers with The Co-operative’s ‘Young Driver’ telematics insurance product who achieve the maximum discount by driving safely
** The Young Driver scheme is aimed at 17 to 25 year old drivers and uses telematics ‘black box’ technology to reward safe driving. Motorists who achieve the maximum driving score (5) currently receive 10% discount on their initial premium, which is rewarded after the first 90 days of driving. From 21 December this discount will increase to 20% on new policies
*** Research carried out by One Poll for The Co-operative Insurance on 2,000 motorists in November 2012
**** This applies if drivers achieve the maximum driving score (5)
***** Data collated from 389 17 and 18 year old customers with Young Driver insurance
****** An analysis of 10,000 young driver claims by The Co-operative Insurance in April 2012 showed that those with telematics or ‘black box’ insurance are 20 per cent less likely to have a car crash than those with standard insurance