Insurance provider 'to reward young drivers for road safety'

Date: 17/3/2011

A new incentive initiative is to be launched by a motor insurance provider in order to help promote their youngest policy holders to keep road safety in mind.

The Co-operative Insurance has announced that its new cover product will calculate premiums based on the driving behaviour of Britons aged between 17 and 25 years old.

It claims that this is the first time an insurer has rewarded young motorists for staying safe behind the wheel and that its Pay How You Drive tariff will typically be £328 cheaper than the competition.

As a result, 82 per cent of the people it is aimed at could make a saving by choosing this product, rather than going elsewhere, the firm asserts.

Under the scheme, participants will be assessed for a period of 90s days using data transmitted from a Smartbox that is fitted in the vehicle.

David Neave, Director of General Insurance at The Co-operative Insurance, said: "To ensure we do not end up with an entire generation priced out of car ownership, we are giving them a chance to prove themselves as responsible drivers and dispel the assumption that all young drivers will drive badly and have accidents."

The Transport Select Committee recently urged the government to redouble its focus on reducing the number of road causalities that involve young motorists.

Posted by Sarah Bailey