A new scheme has been launched which guarantees to reward safer drivers and give greater control over the cost of car insurance premiums.
The pay-as-you-go coverage works by attaching a small device, which is no larger than a mobile phone and known as a ‘black box’ to a car . This gadget then measures details such as driving speed, location and time and feeds the information back to the insurer, which in turn determines an insurance rate.
A spokesman from the company offering the service, Coverbox car insurance, says it works in the same way as pay-as-you-go mobile phones in that drivers only pay when they use their car .
The service also includes an anti-theft device that can track a car in the event of it being stolen and a safety alert in case of a potential accident .
As the service monitors risk and the scale of driving, it could help some drivers under 25 cut costs. This group generally pays the highest premiums as they are considered the riskiest demographic to insure .