UK insurance outfit Norwich Union is to use in-car technology to offer tailored pay-as-you-drive premiums to young drivers.
The Norwich Union black box uses GPS satellite technology to calculate driver premiums based on when and how often they drive their car.
Norwich Union has been testing the technology in conjunction with IBM and mobile phone network Orange. The firm says the product appears ideally suited to young drivers, since time of day is a major risk factor for accidents among this age group.
Robert Ledger, programme director for the scheme, says: "Government statistics show that this age group are more likely to be killed or injured in road accidents between the hours of 11pm and 6am – and this has been factored into tariffs for this product."
The onboard telematics device costs £199 and the first 1500 boxes are ready to be fitted in customer cars, says Ledger.
He says that young motorists stand to save up to 30% a year on their insurance premiums, recouping the initial outlay on the device.