Young drivers: New tech will help to cut your car insurance premiums
Young drivers are often on the receiving end of some pretty hefty car insurance quotes, but all that can change thanks to black box technology. What is it? Let’s find out…
Book Theory Test Today says: “This is great news for young drivers, with research indicating that new tech is helping to slash the cost of car insurance for Britain’s younger demographic. However, the news is not so good for ‘older’ motorists, with research indicating a rise in their insurance premiums.”
Motorists under the age of 25 have seen average premium prices drop by 5.5% in the 12 months August 2014 – 2015. This is according to researcher Consumer intelligence. Drivers under 25 have had a little help from black box technology, which monitors driving patterns to help reduce car insurance premiums.
Unfortunately, it’s a different story for motorists over the age of 50. They’ve watched their car insurance premiums rise by 8.6%.
Young drivers benefitting from black box technology, but what is it?
Black box technology, otherwise known as telematics, tracks the speed and driving patterns of young motorists, plus the time of day they’re out driving. The data recorded by black box technology gives young drivers leverage when looking to buy car insurance. It gives them proof that they are a low-risk driver, so their car insurance payments should be low, too.
Chief executive of Consumer intelligence, Ian Hughes, said: “The black box technology is reversing the ‘massive increase’ in car insurance premiums for young drivers, which started in 2000.”
“Older motorists, to an extent, are helping to fund premium reductions for younger drivers, and they need to make sure that they’re getting the best value for money from their car insurer,” Hughes said.
Young drivers still face high costs
Book Theory Test Today says: “Hold your horses young drivers, while this research indicates good news, don’t get carried away. You still face some of the highest car insurance costs, regardless of the price shift. In August, the average cheapest yearly premium for all motorists stood at £696.”
“However, the cost was £1,680 for motorists under the age of 25, while the cost was just £258 for motorists over the age of 50. Despite the emergence of black box technology, it would appear that there’s still a long way to go to bring down the cost of car insurance for you young drivers. But, the new tech is a step in the right direction.”
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