In-car 'spy' set to lower young drivers' premiums

Car insurance premiums are on the rise, particularly for the young, but one provider reckons that it has the answer.

Young Marmalade, which specialises in offering cover to drivers in their teens and twenties is to start offering policyholders a system which monitors their driving habits and skills to assess the real risks of them having an accident and so produce a fairer insurance premium. The "Intelligent Marmalade" unit is installed in the car and tracks speed and vehicle handling skills. The information is downloaded on to the Ingenium Dynamics website and this can be accessed by policyholders and even by their parents.

The idea is to improve skills and ultimately lower accident risk and insurance premiums. "Youngsters may be wary of Intelligent Marmalade because it could be seen as a spying eye – a sort of 'black box' which records their every move," says Young Marmalade founder, Nick Moger. "Sensible young people though soon realise the benefits of using the system in reducing their risk assessment." Young Marmalade offers customers a one-stop shop, combining car purchase with insurance. Only cars bought through Young Marmalade will be fitted with the new driving skills-monitoring system.