The Co-operative Insurance launches Young Driver initiative

The Co-operative Insurance has launched a groundbreaking new Young Driver motor insurance product, which calculates premiums based on the driving behaviours of 17 - 25 year olds.

For the first time in UK Insurance history, young drivers will be rewarded for safer driving. The new, ‘pay how you drive' product will be on average £328 cheaper than competitor prices, and over three quarters (82%) of young drivers could make a saving.

The launch comes as young drivers face higher motor insurance premiums, especially in the light of the recent European Court of Justice (ECJ) ruling that banned companies from using gender to set insurance premiums.

David Neave, Director of General Insurance at The Co-operative Insurance, said: "It is a fact that many young people are simply being priced out of owning a car due to the escalating cost of motor insurance for young drivers. To ensure we do not end up with an entire generation priced out of car ownership we are giving them a chance to prove themselves as responsible drivers, and dispel the assumption that all young drivers will drive badly and have accidents."

Drivers will be assessed every 90 days based on four driving behaviours. If responsible driving behaviours are demonstrated they will receive a Safer Driving Discount (up to 11% of the annual premium).

Using data transmitted from a Smartbox, fitted into the policyholder's car, via satellite technology, the following behaviours can be used to calculate premiums:

Braking and Acceleration
Cornering
Speed
Time of driving (e.g. day time, night time etc)

The new ‘pay how you drive' product will help make the UK's roads safer by giving drivers a genuine insight into their driving behaviours. In the UK, an 18 year old driver is more than three times as likely to be involved in a crash as a 48 year old. 
However, if a policyholder consistently drives badly, for example repeatedly breaking speed limits or taking corners too sharply, then their insurance premium could increase by 15% of the initial policy price.

Furthermore, The Co-operative Insurance will cancel any policyholder's insurance should they drive so far above the speed limit that a driving ban be imposed by the Courts. Despite work by the Police and road safety charities such as Brake recent figures show that 2,946 people are killed on Britain's roads every year and a further 244,834 injured.

The product allows customers to log into a unique online ‘Driving Dashboard' to see how their driving has been rated against the four driving behaviours. It also gives advice on what they can do to improve. Each behaviour is illustrated by a speed dial and drivers will be rated on a green (good driving), amber (generally good but showing some bad behaviours) and red (bad driving).

David Neave added: "By using the Smartbox telematics technology we can actually see how a young driver behaves behind the wheel. This innovative technology will ensure that young drivers are given access to fairly priced motor insurance, with the added bonus that the better their driving, the bigger the Safer Driving Discount.

"The Co-operative Insurance is committed to young drivers and improving the safety of the UK's roads. We believe that by giving young drivers the opportunity to log into their individual Driving Dashboard to see how their driving is rated and to access safe driving tips will act as an educative tool and a deterrent against driving badly, which can only be a positive for road users and pedestrians across the UK."

Julie Townsend, Director of Campaigns at road safety charity Brake, said: "As a charity that cares for bereaved and injured crash victims, we welcome this new approach to encouraging young drivers to keep themselves and others safe. Young drivers are involved in a shockingly high proportion of deaths and serious injuries on our roads, causing trauma and heartbreak to many families every day - and it's this high level of risk that pushes up their insurance costs. Persuading young drivers to make safer choices, like slowing down and avoiding night-time driving, is vital in preventing more lives being needlessly cut short on our roads."