The scheme, offered by Co-Operative Insurance, was introduced for young drivers aged 17 to 25 and involves installing a black box-style device into a car.
The box will then record the driver’s acceleration, braking, cornering and speed and reduce, or increase, insurance premiums accordingly.
Designed to offer lower insurance to safer drivers, the scheme could also have an effect on the number of accidents because drivers will be driving more carefully in order to save money.
Research by the insurance provider shows drivers who use the technology are involved in 20 per cent less crashes and save an average of £100 on their insurance premiums as a result of the scheme.
The black box is the latest measure designed to cut insurance costs for young drivers. The average insurance cost for a British driver is now £3,478, according to the AA, and it is turning younger drivers away from owning a car.
Insurance costs are based on several factors including engine size, power, value of the car, safety equipment and personal details such as age of the driver, experience on the road, where the car is parked and even the job of the driver.
This means small, cheap cars are the best cars for a young driver in terms of insurance costs. Cars such as the Ford Ka city car, the Fiat 500 and the Kia Picanto are all popular options for younger drivers in the UK because of this.
However, insurance costs are on the rise in the UK due to an increase in the number of false whiplash claims in collisions, according to insurance companies.
For more information on cheap car insurance or the best car for a young driver, contact your nearest Perrys Motors dealership.