Young drivers could slash the cost of their car insurance premiums if they install a new 'spy box' into their vehicle.
The news will be welcome to many young drivers who have seen premiums rise by as much as 50 per cent in the last year.
The new devices use GPS technology which provides information to insurance companies on drivers’ habits, such as their speed, where they drive and how fast, and details of their acceleration and braking. Those who are seen to drive sensibly will be offered lower premiums. The insurer won’t be alerted if the driver is in an accident.
These pay-as-you-drive schemes are now available from a number of insurers. Drivers will be asked to estimate how far they drive annually and penalised for going over this, but refunded if they drive less.
It will be cheaper to drive during off-peak times, whilst the most expensive time will be at night, although drivers are free to drive whenever they want.
Alex Crooks, 23, who is using one of these boxes, claims his premiums have fallen by half.
The boxes can also act as GPS tracking device, so if a car gets stolen it has a better chance of being recovered.
