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The Black Box – hope on the horizon for young drivers with telematics insurance

Drivers aged between 17 and 22 have always faced higher car insurance premiums due to their perceived (and indeed proven) high risk. Rates have continued to steadily increase and now have reached the point where many simply cannot afford insurance at all. Some in this age bracket have been quoted figures around £550 per month when opting to pay by instalments (which includes an interest charge of around 10% per month in some cases).

No surprise then that recent figures indicate that between 20% of young motorists aged 17 to 22 are estimated to be driving without insurance at all! In an attempt to be able to help their children afford insurance many parents are insuring their youngster's car in their own name as the main driver and add their child as the second driver. This practice is known as 'fronting' and is in fact illegal – which means the policy could be invalidated.

However, there is some hope on the horizon. The little black box provides some relief for young drivers as research from the Daily Telegraph found that new telematics insurance policies could reduce bills by almost half. A telematics insurance policy monitors drivers' safely by measuring mileage, when they drive and how they drive – and they are penalised for sudden braking, excessive g-forces, or cornering. In real terms these 'pay-as-you-drive policies' will make pricing more fair as they reward careful drivers by reducing premiums and penalise those who take risks. Some critics say this smacks a little of 'Big Brother' - however, if you are not doing anything wrong, you have nothing to fear.

While young drivers may be able to make significant savings with type of cover, it is crucial to pay attention to the terms and conditions and stick within the guidelines to avoid paying more– or even invalidating the policy. For example, young male drivers are 17 times more likely to become involved in an accident between the hours of 2 am and 5am – drivers with the telematics insurance who drive at night will produce a negative driving score on the system and this could result in an increase in premiums by 15%.

Clearly you need to seek advice. The professional and friendly team at Westhill Insurance Services will be able to offer you advice on this new form of insurance for young people. They will explain how this may work – and because they are independent – will be able to shop around for you to make sure you get the best possible deal. It may be that telematics insurance will not benefit you, and if that is the case, at least you have reliable and professional advice as to the best way forward. Having invested in the cost of learning to drive and then buying and maintaining a car, the best possible insurance deal may reduce further outgoings, and you can trust Westhill Insurance Services to find the best insurance for you.

Contact Westhill Insurance Services, today.

Posted on 1st July, 2011