Vehicle Tracking Could Reduce Car Insurance For Younger Drivers

Pay as you drive policies, which reduced car insurance policies for under 25’s, have been dropped by most insurance firms because the technology was too expensive. However, vehicle tracking has provided a more cost effective way to reduce a young person’s insurance premium, whilst also improving their safety and the vehicle’s security.

Vehicle tracking systems are installed under the bonnet with a connection to the engine. They can provide data to insurance companies on how often a car is driven and how ‘well’ it is driven by monitoring things such as braking, acceleration and speed. The insurance premiums will only be reduced for safe and sensible drivers, and ‘boy racers’ could find themselves with even higher premiums to pay if they are judged to be irresponsible.

This system of car insurance will mean that a young person will get charged at a cheaper ‘off peak’ rate but late at night and rush hour will be more expensive. The billing will be estimated so if the car is driven more than has been forecasted consistently over the period of a quarter, for example, then the extra monies owed to the insurance company would have to be paid by way of a lump sum or a change in the payments each month. However, if the vehicle is driven less than forecasted, a refund would be issued.