Telematics devices, more commonly known as black boxes, are helping young drivers pay 5.5 per cent less for their car insurance as insurance companies can see evidence of safe driving.
This comes according to research by Consumer Intelligence, who looked at the year to August to compile their figures.
On average however, those under the age of 25 years can expect to pay more than three times as much for their car insurance as drivers who are over 25 years. The average price they pay is £1,680 a year, considerably higher than the £481 paid by those aged 25 to 49 years.
Contrary to the cheaper prices young drivers are finding though, car insurance premiums for drivers overall has risen. An overall rise of 4.6 per cent for premiums was reported, with the over-50s seeing the biggest average rise, of 8.6 per cent. Those aged 25 to 49 years saw a 7.4 per cent increase.
Young drivers are finding cheaper prices than in previous years though, as black boxes are offered to an increasing number of drivers. Almost half of the cheapest car insurance offered comes from black box providers, with premium costs more than 20 per cent lower than October 2013.
“Older drivers are to an extent helping to fund the premium reductions for younger motorists and need to ensure they are receiving the best value for money from their insurer,” said Ian Hughes of Consumer Intelligence.