Co-operative Insurance offers cashback to young drivers

The Co-operative Insurance has spent £6 million on providing young car insurance customers with cashback earned through its telematics scheme.

Nearly 90 per cent of individuals with one of the company’s Young Driver policies have had an average of £188 returned to them for proving they are safe while on the road.

The initiative, which was launched two years ago, allows motorists between the ages of 17 and 25 to measure driving behaviours like cornering, braking and acceleration using a Smartbox.

Grant Mitchell, head of motor insurance at the Co-operative, said the cost of cover for young people is an ongoing problem.

“However, our telematics scheme is a solution to this and is helping to make insurance more affordable for young motorists who drive safely,” he added.

It was revealed that since the Young Driver policy was rolled out, accident rates among customers aged 17 to 25 have dropped by one-fifth.

The Co-operative is the first major insurance firm to launch a scheme of this kind and it now boasts more than 30,000 customers and its own ‘try before you buy’ smartphone application.

Related Articles