‘Pay how you drive’ insurance from the Co-op

Co-operative Insurance has today launched an innovative new car insurance scheme for young drivers. The scheme known as ‘pay how you drive’ utilises a smart box and satellite technology to track when and how clients drive.  Acceleration, braking, cornering, speed and, as young drivers are more likely to have accidents at night, times of journey are monitored.

Every 90 days an assessment is made and a discount of up to 11% is deducted off the annual premium for those who have driven responsibly. 82% of young drivers, who are 3 times more accident prone that 48 year old, could save an average of £328 annually.

Should the smart box report doubtful driving, with sharp cornering and broken speed limits, premiums could increase by 15%.  The insurance policy would be cancelled if a ban has been imposed on a driver who has excessively exceeded the speed limit.

Fitting the palm-sized smart box to the car is free with policy holders able to view an online ‘driving dashboard’ to monitor their own performance shown on a three-stage traffic light system. Safety groups, such as Brake, have welcomed the move by Co-operative Insurance who are the first to monitor driver behaviour in such a way.