Black boxes can reduce cost of car insurance

Wed, 15 Feb 2012

The cost of car insurance for young people could be reduced by the introduction of more black boxes.

Companies that use the device can find out information about a driver's style, such as how often they stick to speed limits, their braking and cornering skills and the amount of time they spend behind the wheel at night.

This information can then be used by the insurer to offer a personalised pricing plan.

According to the Co-operative Insurance, schemes such as these can bring a 34 per cent drop in the cost of car crashes.

Young drivers who are on the initiative with the Co-operative are set to receive £20 million in reductions.

David Neave, director of general insurance at the group - which employs more than 106,000 people - stated: "Currently many young motorists who drive safely are picking up the tab for the ones that drive recklessly. However, the black box allows people to pay a fair and personalised price for their cover." 

He added people can also look forward to people adopting a more secure approach when they are on the road if they have the machine installed.
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