Halfords Group plc : Black Box Technology Could Cut Costs For Young Drivers.

Black Box Technology Could Cut Costs For Young Drivers.

Young drivers facing spiralling insurance costs are being offered a chance to cut premiums by hundreds of pounds. Technology, in the form of a small black box fitted behind the car's glove box, monitors driving habits and allows newly qualified motorists to prove they are safe on the roads.

Specialist insurers Autosaint has teamed up with car parts, cycle and leisure retailer Halfords to provide the "telematics" service with expert fitting and servicing of the boxes being offered at 270 selected Halfords superstores.

The new system will feed back information on the driver, record mileage, times the car is driven, speed, acceleration, cornering and braking statistics.

By encouraging safer driving the insurers are able to reduce premiums. Parents can also use the box to check how their children drive and locate where they are.

Young drivers who recently passed their test are now being quoted as much as £8,000 for a traditional policy. There are currently 4.2 million drivers under 21 in the UK and I million quotes are sought every month by 17-21 year olds.

The new policy works by giving the driver a notional 100 points every day. Every time a mistake is made points are deducted. A score of 60 plus rates the driver as excellent and allows the insurance company to slash premiums as the risk of accident is dramatically reduced.

However drivers that prove erratic or careless would see their premiums increased. Driving at over 100 mph would mean the insurance policy was instantly cancelled. Premiums are reviewed every three months.

Telematic monitoring has been used successfully in the past by transport fleets to check on company drivers.

Stuart Whalley from Autosaint said installing the black boxes could bring premiums down by as much as 70% compared with a traditional policy.

"Using this information, we can calculate insurance premiums based on driving skills. If you drive safely, you will continue to save money. It's that simple."

The box could prove invaluable to young women who from next year face higher premiums because of a European Court gender ruling which means that insurance companies can no longer charge sexes different rates. Young men in the past have faced higher costs because of a "boy racer" reputation.

Premiums have always been greater for young drivers owing to higher risk. Newly qualified motorists are more likely to be involved in a traffic accident during the first two years after passing their test. One in five new drivers is involved in a crash within six months.

ENDS