UK Car Insurance News

August 26, 2006

 

New iniative aims to cut young driver car insurance premiums

Almost one million young people (912,000) have been in, or know someone who has been in, an accident at night in the last three years, according to new research from car insurer More Than.

Despite representing only 10% of the total driving population, statistics show that young car drivers are involved in over a quarter (28%) of all accidents where a driver is killed or injured.

In a move aimed at reducing young driver accidents, More Than is launching a new initiative - DriveTime ? on Sunday 6 August 2006, designed to encourage drivers aged between 18 and 25 not to drive at night, when the chances of them being in a car crash are highest.

The scheme uses an in-car telematics system to track at what time of the day or night the vehicle is being driven. Drivers pay a reduced fee to insure their cars, 40% off More Than's standard prices. To encourage them to leave their vehicles at home during the most dangerous hours on the road (between 11.00pm and 06.00am) an additional fee of £25 is applied if the car is driven during these hours.

40% of all accidents between 11.00pm and 06.00am involving young drivers result in death or serious injury, compared to 20% at all other times, yet one in seven (12%) of young drivers surveyed by More Than actually feel safer driving at night. By reducing the number of young drivers on the road at night, More Than estimates that DriveTime could help reduce accident rates among 18 to 25 year olds by up to 25%.

More Than's research also reveals that a fifth (21%) of young people find their car a significant drain on their finances. The average cost of running a new car represents 40% of their annual income, compared to 20% for the average motorist4. To help safe young drivers manage their budgets better, DriveTime rewards them by cutting standard More Than car insurance prices by 40%.

Bryan Turner, Head of DriveTime at More Than, said: "High accident rates for young drivers on the roads at night are a major issue and we have been working for some time to come up with a solution to reduce these. DriveTime provides a fantastic way for young, safe drivers to avoid being on the roads at the most dangerous times and can also save them a significant amount off their insurance costs.?

Drivers who sign up for More Than's DriveTime product receive a GPS device (DriveTime unit) that will be delivered and installed in their vehicle free of charge. Once installed, whenever the car starts, a message is sent to More Than advising the time and place that the journey commenced. A further message is sent when the engine is switched off to confirm that the journey has ended.

Almost half (41%) of young motorists already drive their car mainly during the day and evening (06.00am to 11.00pm) and this product has been designed with them in mind. Bryan Turner explained: "We feel it?s unfair that young people get tarred with the boy or girl racer tag when we know that many of them are safe drivers. We?re confident that DriveTime will appeal to those who understand that leaving their car at home during night-time hours, when it is more dangerous to drive, is a smart choice. And we?re sure they will welcome a way to save a significant amount off their car insurance."

Mary Williams OBE, chief executive of Brake, the national road safety charity, said: ?We need to find more innovative ways of preventing tragic deaths involving young drivers and their passengers on our roads. We welcome the DriveTime scheme as an excellent first step towards reducing the exposure of young drivers to driving at particularly risky times of day. Brake is also urging the UK government to introduce ?graduated licensing?, with a post-test period of restrictions on driving, to build up the ability and experience of young drivers gradually.?

More Than?s DriveTime scheme is running as a pilot, initially involving 2,000 vehicles.

posted by UK Insurance Index  @ 12:45 PM

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