Car insurer reduces premiums for black box users

Wed, 12 Nov 2008

Admiral Insurance is offering a discount to young drivers who allow their parents to track them by installing a black box in thier car .

The BBC reports that the scheme, which was piloted in Staffordshire by 40 young motorists, has now been made permanent. Cars were installed with tracker devices the size of matchboxes, which sent journey details to a website enabling parents to see how careful the drivers had been.

Admiral Insurance says it will provide a 25 per cent discount to anyone who installs the black box into their vehicle . The black box can sense speed, braking and G force as the car turns corners and will display red, amber and green flags to show how well the car is being driven.

Insurance provider Zurich last month warned parents that insuring cars in their own names and adding their children as "named drivers" is illegal if the child is in fact the main driver. It is called insurance fronting .
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