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Posted 20th February 2009

Insurance help for young drivers

The Co-operative Insurance are championing a "black box" initiative after independent research and industry statistics have revealed that the cost of car insurance to young drivers has increased, on average, by four times the rate of inflation during the past year. Put simply, an 11.5% increase in the price of premiums has meant young drivers would have been expected to pay somewhere in the region of £1,500 to insure their cars in 2008.

The Co-operative Insurance believe "pay as you go" premiums are a more cost-effective solution for motorists under the age of 25 - the use of black box technology enabling individual drivers to manage their own risk exposure to help reduce insurance costs. The 2 young 2 die website highlights an ongoing campaign that was launched by Co-operative Insurance in association with Brake, the national road safety charity, whereby young drivers are given the opportunity to apply for "pay as you go" insurance after passing an on-line test.

The possibility of significantly reducing the cost of insuring their cars by answering a series of questions correctly will prove incentive enough to many vehicle owners under the age of 25 to have a black box fitted - a procedure that will be carried out by the Co-operative Insurance at no extra cost once applied for and approved by them. A GPS system is used to compile a unique profile where the way each driver uses their car can help calculate a premium based on factors such as, typically, how many miles are covered, how often, how fast and at what time of the day - valuable information that can not only help make car insurance more affordable for young drivers but encourage them to adopt safer and more efficient driving habits.