A company specializing in motor insurance for young drivers has cut premiums by 17%, crediting the success of its tracker technology.
Young Marmalade required customers to have a black box fitted to their car which tracks the time of day the car is driver, speed, and measures such as acceleration and braking that could indicate safe or dangerous driving. Customers get an initial quote, but this rises first by £250 and then £500 if they drive badly. After this, continued bad driving leads to a policy cancellation.
The company's new prices average £2,601 for men and £1,642 for women, around a third less than the average across the industry.
While these are still huge amounts compared with older drivers, the AA noted it's misleading to simply compare these costs to the value of the driver's own car. That's because insurance also covers the potential damage to other vehicles, which tends to be higher in crashed involving young men.
Although similar black box schemes have struggled in the past, it appears the new scheme benefits from a combination of the technology coming down in price, and the continued rise in premiums making the potential savings more dramatic.
