Spy-in-the-car technology could lower car insurance premiums

Deploying in-car technology which monitors the driving behaviour of motorists could help lower car insurance premiums, particularly for younger drivers, according the Daily Mail.

The newspaper reports that fitting spy-in-the-car equipment which monitors the speeding and driving habits of car insurance policy holders, could see those who drive safely and sensibly rewarded with lower car insurance premiums by satisfied insurance providers.

Spy-in-the-car devices, likely to be installed under a car's bonnet , would transmit data regarding a car owner's acceleration, braking, cornering and speeding activities to car insurance providers, who could then better assess how high or low risk a driver seems and adjust the cost of their car insurance premium accordingly.

Car insurance experts have explained that cautious younger drivers could stand to benefit from welcoming spy-in-the-car devices, as many young drivers have seen the cost of their car insurance policy rise by more than 50 per cent over the last six months.

Spy-in-the-box technology had previously been trialled by one car insurance provider who ruled that the scheme was too expensive to roll out across the UK.

The publication has reported that six car insurance providers will now offer the devices, as sophisticated and cheaper GPS tracking prototypes have since been developed.

Car insurance expert Penny Searles told the Daily Mail that younger drivers using spy-in-the-car technology could save up between 15 -17 per cent on the cost of their car insurance cover.

Some insurance providers have reasoned that sensible young drivers, subscribing to the scheme could benefit from a 40-50 per cent reduction in the near future.

Mon, 31 Jan 2011 08:49:00 GMT