New car insurance option for young drivers

8:26am Friday 11th March 2005

PREMIUM rate insurance quotes could be a thing of the past for some young drivers in Cumbria who opt for a new pay as you drive' scheme from Norwich Union, reports Caroline Beamish.

The scheme aims to provide more affordable insurance for drivers aged between 18 and 21, using new Global Positioning Satellite technology to record the journeys of the car itself.

It is hoped the scheme will help to reduce the number of accidents involving young people on the road - which saw 444 serious car accidents, resulting in death or injury, among drivers aged between 16 and 21, in 2003.

To do this, a black box recorder-style device will be fitted to the vehicle of anyone who opts for the scheme for a fee of £199.

This transmits information on how often and when the car is used, so an individual premium can be calculated.

The device enables the driver to keep their insurance costs to an affordable level by driving mainly during off-peak' times - between the hours of 6am and 11pm.

Driving between 11pm and 6am, when research shows most accidents involving young drivers are likely to take place, costs more.

It is hoped the increased cost of driving at night will deter young people from taking to the roads when conditions are less safe.

Robert Ledger, programme director for the Pay as you Drive insurance scheme, said: "The scheme brings motor insurance into the 21st century by providing affordable comprehensive insurance for young drivers in return for driving at safer times.

"There's no getting away from it, government statistics show this age group are more likely to be killed or injured in road accidents between the hours of 11pm and 6am and this has been factored into tariffs for this product."

See In Gear for more motoring news.

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