'Black boxes' could slash the cost of insurance for young drivers

The often astronomical insurance premiums for newly-qualified young drivers could be cut by up to £700 a year if "black boxes" are fitted in their cars, insurers and the Government will claim today.

The initiative will be championed by David Cameron today at a Downing Street seminar to find ways of halting the increase of the cost of insuring a car.

The tamper-proof smartboxes, usually installed under the bonnet, use satellite navigation and G-force technology to monitor young motorists' speed, as well as braking, acceleration and cornering and how often they drive at night. Full details of their behaviour on the road are updated every 90 days.

Co-operative Insurance, which launched the scheme last year, said motorists aged 17 to 25 with a black box in their car were less likely to be involved in a crash. They can typically receive more than £500 reduction in their initial premium in return for having the device fitted.

Now the Prime Minister will back calls for "telematics" to be rolled out more widely across the industry.

David Neave, the Co-operative's director of general insurance, said: "The cost of insurance has hit an all-time high, especially for young drivers who feel that they are being priced off the road. Many young motorists who drive safely are picking up the tab for the ones that drive recklessly. However, the black box allows people to pay a fair and personalised price for their cover, determined by how well they drive."

A crackdown on whiplash insurance claims following minor collisions will also be announced today. David Cameron will claim that Britain has become the "whiplash capital of Europe" with more than 1,500 claims a day, many as the result of staged collisions. The insurance industry says the annual bill for whiplash claims has reached £2bn, adding £90 to the average premium.

Ideas being examined include introducing a minimum speed before which any claim is even considered.

A panel of medical experts with specialist training in diagnosing whiplash could also be set up to give advice to courts considering contentious claims.

Otto Thoresen, the director general of the Association of British Insurers, said: "The cost of motor insurance reflects our society where it is all too easy to make spurious and exaggerated personal injury claims, where excessive legal costs can outstrip compensation awards."

Mr Cameron is expected to say: "I am determined to tackle this damaging compensation culture which has been pushing up premiums. I want to stop trivial claims, free up businesses from the stranglehold of red tape and look at ways we can bring costs down."

Independent Comment
blog comments powered by Disqus
News in pictures
World news in pictures
Life & Style blogs

It’s National Work From Home Day today

Plus live in a folly tower and Towcester growth

Where have property prices been reduced most in the UK?

Plus how much you need to earn to rent in London, and new homes figures

Is Rushcliffe the best place for families to live?

Plus where The Apprentices live, house price growth outside London, and househunter numbers

       
Independent
Travel Shop
South Africa
15 nights from only £1,899pp Find out more
Paris and the Cote d’Azur city break
Seven nights from £579pp Find out more
Seville, Granada and Malaga break
Seven nights from £549pp Find out more

ES Rentals

    Independent Dating
    and  

    By clicking 'Search' you
    are agreeing to our
    Terms of Use.

    iJobs Job Widget
    iJobs General

    SAP FI-CA Consultant - up to £58k

    £50000 - £58000 per annum + Benefits and Bonus: Progressive Recruitment: SAP F...

    PHP/ Drupal Developer - £35k - WC

    £30000 - £40000 per annum + BENS: Progressive Recruitment: Drupal Developer A ...

    C# WEB DEVELOPER

    £45000 - £50000 per annum + bens: Progressive Recruitment: C# WEB DEVELOPER Le...

    WPF Developer (C#, VB.Net) - North East - 6 Months

    £240 - £260 per day: Progressive Recruitment: WPF Developer (C#, VB.Net) North...

    Day In a Page

    The price of pacifism: Refusing to go to war is finally being recognised as a brave act

    The price of pacifism

    From the Second World War refusenik to the 19-year-old Israeli, Holly Williams talks to five people who risked shame and suffering to take a stand as conscientious objector.
    'It was mass hysteria': Jason Isaacs on groupies, theatre bores and snogging James Bond

    Jason Isaacs: Groupies, theatre bores and James Bond

    To millions, Jason Isaacs is one of Harry Potter's arch enemies – but his wife prefers him as a Scottish TV detective.
    Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?

    Sealand: 'Micronation' or illegal fortress?

    Thomas Hodgkinson spent a week at the tiny platform off the Suffolk coast to find out.
    Not a bad bone: Mark Hix cooks with cutlets and ribs

    Mark Hix cooks with cutlets and ribs

    If you ignore cutlets and ribs, you'll risk missing out on some delicious and easy meals, says our chef.
    The experts' guide to summer: From getting fit for the beach to recreating that Olympic buzz

    The experts' guide to summer

    From getting fit for the beach to recreating that Olympic buzz
    Sex, drugs and fast cars: The legend of James Hunt has set Hollywood hearts racing

    Legend of James Hunt has set Hollywood hearts racing

    Early glimpses of Ron Howard's film Rush suggest it will portray Hunt as a high-living lothario, with an insatiable appetite for partying.
    Macklemore: 'I don't have moderation when using drugs and alcohol. It was hurting my life'

    Macklemore: 'I don't have moderation'

    The next Vanilla Ice or the next Eminem? Macklemore doesn't have a record contract – but he does have the UK's biggest-selling single of the year.
    Don't be shy: Bill Granger's Sri Lankan recipes

    Don't be shy: Bill Granger's Sri Lankan recipes

    Sri Lankan cuisine is light, sunny, wonderfully spiced – and so easy to cook from scratch. Just as soon as you've broken into the coconut, that is.
    Sir James Dyson’s latest project: Cleaning up hospitals

    Sir James Dyson’s latest project: Cleaning up hospitals

    Doctors are hailing the revamp of a Bath neonatal unit, where babies sleep more and feed better, as the model for patient care
    One man returns to Argentina's town that drowned

    One man returns to Argentina's town that drowned

    Epecuen was submerged under 10 metres of water in 1985. Now the floods have gone – and 83-year-old Pablo Novak has moved back in
    The real thing? Historian publishes Coca Cola's 'secret formula'

    The real thing?

    Historian publishes Coca Cola's 'secret formula'
    Gordon Ramsey's worst nightmare: A restaurant he cannot save

    Gordon Ramsay's worst nightmare: A restaurant he cannot save

    The pugnacious chef finally met a shambolic restaurant he couldn't save. John Walsh on when TV makover refuseniks fight back
    Join Ryanair! See the world! But we're only paying you for nine months a year

    Join Ryanair! See the world! But we're only paying you for nine months a year

    Glamorous myth of the flight attendant lifestyle undermined by angry employee's claims of 'exploitation'
    Braising saddles: Did the recent furore scupper sales of horse meat? Neigh, far from it!

    Braising saddles: How to cook horse meat

    Did the recent furore scupper sales of horse meat? Neigh, far from it! Will Coldwell hoofs it to the kitchen.
    Why bitters are back on the bar: A few little drops pack a big punch in cocktails

    Why bitters are back on the bar

    A few little drops pack a big punch in cocktails. No wonder we're learning to love them again...