A young driver car insurance pilot by Norwich Union has been declared a success as around 20% fewer claims were made than with a normal policy.
The pay-as-you-go motor insurance policy was aimed specifically at young drivers aged 18 to 23, an age group which has one of the highest claim rates of all motorists. It is intended to both reduce the number of claims and make young driver car insurance more affordable.
This pilot was the second one carried out by the well-known car insurance firm in recent years. The other pay-as-you-drive motor insurance test policy was launched in 2004 and 5,000 drivers of all ages took part.
In both pilots, a black box was installed in each car in order to measure the distance travelled so the cost of the policy could be accurately worked out. Black boxes have been revealed to also hold information such as speed and location - information which could be used to reveal fault in a car accident. The knowledge that data about their driving is being monitored prompts many motorists to drive more carefully.
Mike Page of Hoot Car Insurance Services commented: "It sounds like this young driver car insurance policy is great for people who don't clock up lots of miles. As it makes them drive more carefully too, I'm all for it."