Black box car insurance can save young UK drivers hundreds of pounds a year
YOUNG drivers could save up to £363 by switching to a telematics or black box policy, claims new report.
Young motorists could save almost a quarter off their car insurance premium by simply switching to a telematics premium, claims MoneySuperMarket.
Car insurance premiums for young drivers have been slashed by as much as 17.1 per cent over the last year, claims the insurer, but motorists aged between 17-24 years old are still missing out on savings.
Typically motorists in the 17-19-year-old age bracket are stung with the highest premium costs in the UK as they pose the most risk while on the road.
Half of these drivers are, however, recognising how savings can be made with 51 per cent of young drivers taking out telematics policies, claims the insurer.
This is followed by 20 per cent of 20-24-year-olds and seven per cent of 27-29 year-olds taking out black box car insurance policies.
According to their research, drivers aged between 17-24 years old could slash their premiums by up to £363 for taking out a telematics policy.
Telematics car insurance policies use data about where, when and how someone drivers to determine the cost of their insurance.
A device is installed in the car which measures this data and can monitor driving habits, length of journeys, the time and date of journeys, types of roads driven on and the smoothness of driving.
This data is then passed on to the insurer who can adjust the premium cost accordingly.
After intervals of three, six and 12 months premium costs can go up or down offering an incentive to motorists who drive safely.
Drivers with a Vauxhall Corsa are the most likely to purchase a telematics policy and reap the savings (13.88 per cent of all policies are telematics), followed by drivers with a Fiat Punto (12.39 per cent) and a Fiat 500 (12.28 per cent).
Top 10 car models most frequently paired with a telematics policy
Vauxhall Corsa - 13.88 per cent
Fiat Punto - 12.39 per cent
Fiat 500 - 12.28 per cent
Peugeot 107 -11.45 per cent
Mini One - 11.34 per cent
Ford Ka - 11.34 per cent
Citroen C1 - 11.26 per cent
Volkswagen Polo - 10.81 per cent
Toyota Aygo - 10.49 per cent
Renault Clio - 9.80 per cent
Black box: How the technology can lower car insurance costs
Kevin Pratt, consumer affairs expert at MoneySuperMarket, commented: “Despite premiums falling for 17-19-year-olds over the past year, young drivers still pay a considerable amount more than other age groups.
“This is mainly because a high number of personal injury claims come from accidents that involve younger drivers.
“Telematics policies offer a solution for younger motorists to cut the cost of driving.
“Not only do they offer a way to secure a cheaper policy, but they also have the added benefit of making our roads safer by encouraging responsible driving habits.
“If you’re a young driver, it pays to look at your options and see if taking out a telematics policy is right for you.
“It takes five minutes to search online and you could stand to save over £300 in just a few clicks.”