How does it work?
The AA's "Drivesafe" pay-as-you-drive insurance involves having a small "telematics" box, about the size of a packet of playing cards, installed in your car to monitor your driving habits.
Aspects tracked by the box include speed, time of day and types of road travelled on.
Should the data collected indicate that you are a safe driver, your premiums will fall throughout the year to reflect this.
Do any other insurers offer the service?
Insurethebox also offers "pay-as-you-go" policies that allow you to earn bonus miles by driving safely. Other providers include Co-operative Insurance, Coverbox and eCar Insurance.
Will I definitely get a discount?
Safer drivers could see their premiums fall after just 60 days, the AA claims. However, those seen to be exceeding speed limits, cornering sharply or driving a lot night are likely to see their premiums go up.
How much cheaper is Drivesafe?
Insurance cover that involves a telematics box is aimed mainly at younger drivers, many of whom pay thousands of pounds a year for standard cover. AA research indicates that these drivers could cut costs by £850 a year by opting for pay-as-you-drive insurance.
How else can I keep my insurance costs down?
Measures to reduce your premiums include keeping your car in a locked garage overnight and agreeing to pay a higher excess towards any potential claims. It is also essential to shop around. Independent research shows that a quarter of drivers who switched deals rather than "auto-renewing" saved £400 or more.
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