http://www.heraldscotland.com/busin...pay-over-the-odds-for-car-insurance-1.1066437
Herald - paper for big nose snobby c***s (ali etc) said:Young drivers struggling to find an affordable insurance policy are turning to new technology to bring down premiums.
The average premium for a motorist aged between 17 and 22 is now £1956, according to the AA. That’s an increase of more than 50% since last year.
Young motorists pay such high premiums because statistically they are more likely to be involved in an accident. Road crashes are the biggest killer and cause of paralysis, limb loss and brain injury in young people. An 18-year-old is also more than three times as likely to crash as a 48-year-old.
Ian Crowder of the AA says: “Insurers are shunning young drivers because of the high volume and cost of claims. If you end up in a wheelchair because of a car accident, then the insurer could be facing a £17 million claim. And it’s a lot more common than you might expect. One in five young people will have a catastrophic accident in their first year of driving.”
A number of firms are using new technology to monitor motorists. The idea is to promote safer driving and so reduce premiums, which can benefit all drivers but might be particularly attractive to youngsters with high premiums. Insurethebox, for example, fits a satellite device into your car so it can track its movements. The system rewards careful motorists who drive a limited number of miles each year. Mark Grant, business development director of Insurethebox, says: “The technology not only reduces premiums, but also promotes safer driving.”
Insurethebox’s annual insurance policy covers 6000 miles. Drivers are then given 100 bonus miles each month – as long as they drive carefully. Bonus miles are deducted for a number of risky activities, such as driving at rush hour or at night, or for speeding. The average Insurethebox customer earns 50 bonus miles a month.
Drivers can buy top-up miles if they are likely to breach the 6000 limit. Extra miles are sold in bundles of 250 and the cost depends on your original premium. I-kube customers also have a “black box” fitted to their car. But they earn a discount on their standard premium by agreeing not to drive between the hours of 11pm and 5am.
Anyone who drives during these so-called “red hours” incurs an additional premium of £60.
Coverbox is another firm that uses tracking technology to monitor your driving. Customers can then get a rebate on their premium if they drive fewer miles than forecast or if they drive more often than expected during the day than at night. Of course, if you exceed your forecast mileage, or drive more than expected at night, you will have to pay an additional premium.
Penny Searles, director of Coverbox, says: “The black box constantly monitors your driving and customers can look at their driving reports on their own portal. It allows them to control the costs of their insurance and makes them more aware of their driving behaviour.”
Searles reckons that Coverbox customers pay on average 25% less for their insurance than with a standard policy.
Coverbox works with a panel of six insurers, including The Co-operative Insurance. Grant Mitchell, head of motor insurance for The Co-operative Insurance, says: “The Co-operative Insurance is committed to young drivers and raising awareness of the importance of driving safely and responsibly. Through our work with National road safety charity Brake, and Coverbox, our technology provider, we are in a unique position to help educate young drivers on the importance of responsible driving. We do this through the specialist website www.2young2die.org.uk and can also offer young drivers the opportunity to access cheaper car insurance through our partnership with Coverbox.”
Motorists who drive safely can also expect lower premiums in future because they can build up a no-claims discount (NCD). Drivers earn a discount on their premium if they do not make any claims. The NCD can be valuable, reducing the cost of cover by a third after one year.
The specialist firms usually arrange for someone to come and fit the tracking device to your car at a convenient time and place. But check on any fees for the box and installation. Also check whether there is a charge to remove the device if you change cars or insurers.
Some drivers might be wary of the black box. Perhaps it’s a bit too much like Big Brother, collecting potentially incriminating data, such as breaches of the speed limit. But there are other ways, outlined above, for young drivers to save on car insurance.
TOP 10 TIPS FOR YOUNG DRIVERS TO REDUCE CAR INSURANCE PREMIUMS
1. Buy a sensible car. Every new car is assigned to a car insurance group, and the lower the group, the lower the likely premium. You can find details of the car insurance groups at www.abi.org.uk
2. Don’t modify your car with spoilers and fat tyres as you will pay a higher premium.
3. You might earn a discount on your insurance if you fit approved security devices, such as an alarm or immobiliser system. If you can, keep your car in a locked garage when it’s not in use.
4. It is sometimes cheaper to buy third party, fire and theft insurance rather than comprehensive cover. But you have to weigh up the advantage of saving against the disadvantage of limited cover.
5. If you are prepared to pay a bigger voluntary excess, you might pay a lower premium. But remember that the excess is the amount of money you contribute towards any claim, so it should be affordable.
6. Shop around for an insurance quote. But make sure you compare like with like. A car insurance policy might be cheap because it does not offer many benefits.
7. Consider taking the Driving Standards Agency’s Pass Plus course, which gives extra tuition on night, motorway and inner city driving. Insurers and brokers often offer substantial discounts to drivers who have completed the course.
8. Pay annually. It is more expensive to spread the cost of your insurance over monthly instalments because you will be charged interest.
9. Add an additional driver. If you add an older, more experienced family member with a clean driving record it could cut the cost.
10. If you are the main driver or the registered owner of the car, do not insure the vehicle in your parents’ name and put yourself down as a named driver. The practice – known as “fronting” - is illegal and could invalidate any claim.
