Co-operative Insurance reckons that it has handed back over £6m to motorists who use its Young Driver car insurance since the product's launch two years ago*.
The insurer claims to have more than 30,000 black box customers on its books, as well as thousands more giving the technology a trial using a smartphone app.
The Co-operative also reports that it has seen accident rates amongst young drivers drop by a fifth since launching Young Driver, with bumps and smashes suffered by customers with telematics insurance policies often less serious when compared to those with standard insurance.
Grant Mitchell (not that one), head of motor insurance at the Co-operative, said: "Whilst we know that the young drivers who are attracted to this kind of insurance are likely to be good drivers rather than the stereotypical ‘boy racer', we want telematics to become much more standard as the way to insure new drivers so that as an industry we can play a major role in reducing the shockingly high accident rate among drivers and make insurance more affordable for this age group."
The Co-operative’s telematics car insurance product requires customers to pay an initial premium. Driving is then scored from one (poor) to five (excellent) based on data from the box.
Drivers can earn up to 20% cashback on their initial premium if they achieve a score of four or five. They also have access to an electronic dashboard which will give them feedback on how they are driving.
The average premium for 17- to 22-year-old customers with Young Driver insurance is £1,345. Meanwhile the AA Insurance Index’s average shoparound premium for the same age group is £1,651.
The Co-op claims that the data was collated from 389 of its 17- and 18-year-old customers with Young Driver telematics insurance.
Did you know you can compare telematics car insurance quotes from the Co-operative and many more brands through Gocompare.com?
*Co-op claims that 90% of customers have received an average of £188 back in exchange for safe driving.