Young Marmalade, which specialises in auto insurance for younger drivers, has cut premiums by 17% while in the four months into the end of July, bucking the excitement of soaring premiums.
AA Insurance said premiums for drivers between 17 and 22 have risen, an average of, by 80% in the past 24 months, although the latest Confused.com/Towers Watson automobile insurance index, which tracks in excess of 4m quotes, shows the typical 17- to 20-year-old male now paying 4,006 12 months for comprehensive cover, compared with an average premium cost of 858.
Simon Douglas, director of AA Insurance, says: “Most younger people can’t get their heads round why their first motor insurance premium should be Ten times higher than whatever they might finance a well used banger. Yet it’s got everything to do with the potential damage their irresponsible use can inflict. Entirely preventable auto accident injury claims of 5m or even more have gotten increasingly common.”
Young Marmalade uses telematics or “black box” satellite technology, who’s calls Intelligent Marmalade. It monitors driving behaviour like braking and acceleration, speed as well as what period your vehicle is driven. The information can be used to calculate premiums; the higher quality the car is driven, the lower the premium and vice-versa.
Nigel Lacy of Young Marmalade, said a new man using Intelligent Marmalade pays off usually 2,601 for comprehensive cover, while a woman are going to pay 1,642 12 months. Following your black box has been fitted, initial premiums are be more responsive to 250 and 500 increases in the event the technology indicate the insured is usually a bad driver. If this continues, Young Marmalade will cancel the policy.
Lacy added: “Young drivers are notoriously the sector that suffers quite possibly the most in insurance rates. This can be part of our ongoing persistence for get more the younger generation driving C and driving safely. Intelligent Marmalade has gotten a very positive affect on safety; drivers are way more vigilant and careful using the ‘black box’ onboard.”
In 2006 Norwich Union, now Aviva, launched two policies using black box technology however were withdrawn within a couple of years as a result of low take-up. That was partly as the technology was expensive during the time and partly because insurance for younger people costs less then.
Co-operative Insurance claims its Young Driver policy contributes to premiums that happen to be, usually, 328 below competitors’ quotes, and 82% of 17- to 25-year-olds could save cash. Policyholders their very driving assessed every Three months and are generally given a discount worth as many as 11% with the premium if he or she drive sensibly.