Spy box may cut car insurance costs

A piece of revolutionary new technology which fits inside a car could lower insurance premiums for young drivers.

A spy-in-the-car box fitted inside a vehicle would monitor how motorists drive and could lower premiums for people who drive safely and sensibly. It could prove the antidote to the spiralling cost ofcar insurance, as motorists under the age of 25 have seen premiums rise by 50% in the past six months.

A few years ago, Aviva dropped a pay-as-you-drive car insurance policy because the technology was too expensive.

These latest devices are more sophisticated and cheaper than earlier prototypes.

Insurance companies are kept up to date with information such as when they drive, how far and how well, by checking acceleration, braking, cornering and speed with a GPS tracking similar to that used by satnavs.

Six insurance companies are currently working with the scheme.

The time when a motorist takes to the road affects the cost of a premium. Off-peak is the cheapest time to drive, with rush hour and late at night more expensive.

The boxes, which are placed on the engine under the bonnet, are the size of two cigarette packets.

Sensible drivers will benefit with cheaper premiums, while boy racers could find they are thrown out by their insurer.

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