Direct Line throws young drivers a lifeline
Insurance company Direct Line has become the latest insurer to trial black box technology designed to cut motor insurance costs.
It is particularly pertinent for young drivers who are battling rising premiums. The idea behind the technology is simply to reward drivers for safe and careful driving.
The insurer is launching a pilot scheme with fleet telematics expert Tracker to trial black box technology. They aim to offer help to those young drivers who have been priced off the road by spiralling insurance costs.
It encourages careful driving and penalises those who don't drive as safely. Motorists who are careful will see their premiums fall while sudden braking or cornering for example will be penalised and less safe drivers will see costs increase.
Research estimates that more than two thirds of young drivers should see their annual premiums fall by as much as 22 percent after driving with a black box installed for over a year – a potential saving of hundreds of pounds.
Of course if you drive for a living, or rely on your car more frequently - because you live in the country for instance - then telelmatics might not be or you. Because of the way premiums are calculated - by being charged per mile - you may find traditional providers offer better value.