The Co-operative Insurance hands £6 million back to young drivers
The Co-operative Insurance has paid £6 million back into the pockets of young drivers since it launched its telematics insurance two years ago.
Almost 90% of those with a Young Driver policy have had an average of £188 returned to their bank accounts for proving they are safe drivers.
The Co-operative was the first major insurer to launch a telematics scheme and now has more than 30,000 customers, as well as thousands of drivers trialling the technology through its ‘try before you buy' smartphone app.
The scheme, which is aimed at 17 to 25 year olds, works by using a ‘Smartbox' to measure driving behaviours including speed, cornering, braking and acceleration and night time driving.
Grant Mitchell, Head of Motor Insurance at The Co-operative, said: "The cost of insurance for young people is an on-going problem.
"However, our telematics scheme is a solution to this and is helping to make insurance more affordable for young motorists who drive safely.
"Not only that, but our data shows that people with this type of insurance tend to drive more safely, as the number of car accidents is significantly less among drivers with telematics insurance compared to those without."
Since The Co-operative Insurance launched the scheme, they have seen accident rates among young drivers drop by a fifth. Their data also shows that bumps and smashes among customers with telematics insurance tend to be less serious compared to those with standard insurance, as the cost of claims is half the amount.
Grant Mitchell said: "In the two years since we launched, telematics insurance schemes have grown massively in popularity.
"Whilst we know that the young drivers who are attracted to this kind of insurance are likely to be good drivers rather than the stereotypical ‘boy racer', we want telematics to become much more standard as the way to insure new drivers so that as an industry we can play a major role in reducing the shockingly high accident rate among drivers and make insurance more affordable for this age group."
Despite the reputation young people have for over-confidence on the road, research carried out by The Co-operative Insurance shows that the average new driver only feels truly confident after three years behind the wheel.
The research shows that when it comes to the sexes, men have more confidence behind the wheel than women do, with eight in 10 men (80%) agreeing that they are confident drivers compared to just six in 10 women (64%).
Despite this, data from the Young Driver scheme shows that women drive more safely as twice the number of new female driver get the top discount for good driving compared to new male drivers.
The Co-operative's Young Driver insurance also gives customers feedback on how well they're driving as well as tips to improve.
Grant Mitchell said: "Getting an objective assessment of your driving style is the first step towards improving - and unlocking the door to insurance savings if you drive safely."