Tesco Bank have introduced a new car insurance option which aims to lower the cost for young driver, thanks to “telematic” (car tracking) technology, according to Finextra.
Tesco Box Insurance uses a “smart box” installed in the policyholder’s car, which monitors the driver’s behaviour behind the wheel. Thanks to an online portal, the system allows the driver to measure their speed and braking, see what times of day and how far they’re driving, which types of road they’re driving on and how many breaks they’re having. The insurer can then also view this data, and uses it to give monthly “bonus miles” and to help work out their renewal premium. The policy is for those aged from 17 to 25, who can choose to pay for either 6,000 or 8,000 miles per year, and can top up these if necessary.
As well as this, there is also an accident alert service which automatically contacts a call centre if a significant impact is recorded. The box records the time and location of the collision and Tesco calls the policyholder to check if they are OK.
Car insurance for younger drivers is now pretty prohibitive, so there are a growing number of tools which try to promote safer driving among those age groups most likely to suffer accidents. If you’re not concerned about the privacy aspects of your insurer knowing your every movement (or having them call you up each time to stop sharply), then this type of car insurance might be of interest.