Telematic insurance rewards safer drivers
A recent report on young drivers shows a quarter had crashed within two years of gaining their licence. It's not surprising then that young or even newly qualified drivers face high insurance premiums.
'Pay how you drive' insurance now allows new drivers to prove themselves to be responsible drivers, and so reduce the cost of their cover against the typical premium rating for their age and experience.
The insurer installs a small telematic GPS device in your vehicle. It is sometimes called a 'black box', and is about the size of a packet of playing cards. The device measures how safely the vehicle is being driven in terms of speed, the type of road, time of driving, and braking and cornering. It then transmits the data via satellite to your computer and your insurer.
The GPS device has additional benefits. It can provide the location of your vehicle to a break-down service, raise an alarm if the car is involved in an accident, or track the vehicle if it is stolen. This is particularly good news for parents of young drivers, who not only know the driving behaviour of their children is being tracked, but also the vehicle itself.
AA Drivesafe telematics speedo
Rewards for safe driving
Your driving behaviour is analysed on your personal online telematics account, and advice is given on how you can improve your score by driving more safely.
If your driving score improves measurably, there will be a reduction in your insurance premium (dependent on the score that you started your policy on).
Of course, if your car is not driven safely the score will go down, and at a certain level your premium will increase.
Since 21 December 2012 insurers can no longer take account of the gender of the driver when calculating their motor insurance premium. Prior to this change young men had paid higher premiums than young women, because they were more likely to make expensive insurance claims. With gender neutral car insurance, young women especially may now have to pay more.
Women using telematic 'pay how you drive' insurance will be less affected by the gender ruling, as there is greater emphasis on how they drive, regardless of whether they are male or female.
'Pay how you drive' insurance (AA Drivesafe) is available from the AA. You get an upfront discount on your policy premium, and a telematic Drivesafe box is fitted to your car. If you drive safely through the year and your driving score improves, you could receive money back from your insurance.
AA Drivesafe – 'pay how you drive'