Smartbox could cut youngsters' car insurance costs

16 March 2011


If you’re a young motorist who has had to insure your car, you’ll know that it can cost you the literal equivalent of an arm and a leg. If you’re the parent of a young motorist who finds themselves forking out the insurance premium on behalf of said youngster, you probably wish your genitals had never been invented.

But now, those insurance premiums could be reduced as young motorists will get the chance to proved that they’re not all crack-addled speed freaks – and it’s all thanks to a small box that will be fitted to their car and record their driving behaviour.

The box, developed by Co-operative Insurance, will reward drivers between the ages of 17 and 25 if they don’t drive between 11pm and 6am, the most dangerous times for young nutters to get into vehicular scrapes.

Other skills like braking, acceleration, cornering and speed will also be taken into account and good, responsible young drivers could get discounts and refunds on future premiums.

David Neave, director of general insurance at The Co-operative Insurance, said: “It is a fact that many young people are simply being priced out of owning a car due to the escalating cost of motor insurance for young drivers. To ensure we do not end up with an entire generation priced out of car ownership we are giving them a chance to prove themselves as responsible drivers, and dispel the assumption that all young drivers will drive badly and have accidents.”

A 19-year-old called Lee who does handbrake turns in the local Morrisons car park every evening in his souped-up Peugeot 306 told us: “What is it? Nah mate, fuck that for a game of skittles.”

TOPICS:   Insurance   Motoring   Banking


  • Martin
    Norwich Union did this a few years back. Take-up was low and it made no money. Good luck CIS.
  • Alexis
    "dispel the assumption that all young drivers will drive badly and have accidents" Surely the Co-op must assume this too since they also charge an arm and a leg to all youngsters?
  • James D.
    No the co-op assume that an increased proportion of young drivers will drive badly and have accidents. They accept that a portion of young people drive sensibly and would like to offer them the chance to prove it. See sensible people are always home tucked up in bed @ 11
  • Marketing W.
    @ James Are you Prince Harry's dad?
  • Mike
    Can't they just increase the cost of insurance for those that claim, and decrease it for those who don't make a claim in the first year.
  • Zleet
    Make it a legal requirement for new drivers to have to display green L or P plates for a year or two and it'll make others aware an inexperienced driver is on the road and appropriate care should be observed.
  • Stuart
    I'm 18 and looking for insurance cheaper than 2.5k is near impossible, but on the other hand, I'd rather not be monitored for EVERYTHING I do!
  • David
    I read about these and decided to get a quote. They offered me £3k/year. More than £1k more than I already pay.
  • Kevin
    There is also the assumption that people want to pay for insurance atall, even if they can afford it. How many uninsured drivers are out there?
  • david s.
    as a parent my only concern is that my son would be on my insurance so i would be driving most of the time but i start work at 5 oclock in the morning so i would get judge on me driving and not my son this does not seem right

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