Young drivers pay expensive rates for car insurance when compared to other age groups. The reason is because car insurance providers see them as the highest risk group. Young drivers have more accidents and the claims are of the highest level of other groups. Their inexperience on the road and tendency to take more risks on the road puts them at a higher risk of having an accident and that is why they pay more for car insurance.

Car insurance providers have worked to develop products designed specifically for young drivers in an attempt to give them a quality policy at a cheaper rate. The increase in products has been helpful but at no other time have there been such choices as are currently available for young drivers. The black box car insurance product has caused the car insurance market to evolve into an environment that gives young drivers fair and affordable product choices.

By choosing black box car insurance a young driver can be judged on their own driving skills and habits rather than the usual statistical data used in conventional car insurance products to determine risk and cost. A GPS unit is installed in the car to collect data to determine if the driver is a safe driver and worthy of cheaper car insurance rates. The ability for young drivers to follow safe driving guidelines to get more affordable car insurance rates is an opportunity that has not existed before black box car insurance.

The study shows that when a 16-17 year old driver has one other teenager in the car with them the odds almost double of having a fatal car accident. If there are two teenage passengers then the odds double there will be a fatal accident and by adding just one more teenager to the passenger total to three the odds quadruple.

This data backs parents that have been keen to limit teenage passengers in the car with young drivers. The true message is that young drivers are not ready for the distraction driving that will result by having friends with them in the car.

Peter Kissinger, President of AAA Foundation, said “We know that carrying young passengers is a huge risk, but it’s also a preventable one. These findings should send a clear message to families that parents can make their teens safer immediately by refusing to allow them to get in the car with other young people, whether they’re behind the wheel or in the passenger seat.”

Black box car insurance has been tried and tested by many drivers in the UK. It is changing the financial landscape for many families every month. It is accomplishing this by opening their eyes to car insurance cost which is lower than expected.

Black box car insurance has the ability to save money each month due to its built-in reward method. A small GPS enabled device is mounted to the inside of the car which is insured. This device records driving habits like speeding, braking, cornering, and so on. From a parent point of view, the black box car insurance is a blessing due to its ability to be seen online. At any point in time the driving habits can be checked by going to the black box car insurance dashboard. There, habits which can be improved on are able to be reviewed.

Black box car insurance rewards its drivers by applying discounts to future premium costs when safe habits have been recorded by the small in-car device. Discounts which result in big yearly savings when added up.

Black box car insurance is able to be purchased online and is gaining in popularity each month. It proves monthly expenses could be changed in a positive direction.

Dominique Bonte, group director, telematics and navigation, said “While insurance telematics or usage based insurance (UBI) is far from a recent phenomenon – US-based Progressive was already trialing solutions back in 2002 – a renewed interest in this market has occurred over the past two years, with an acceleration in uptake, as well as a dramatic change in the very nature of UBI, migrating from pay as you drive (PAYD) to pay how you drive (PHYD) based on continuous driver behaviour monitoring and analysis.”

Young drivers and female drivers are being encouraged by experts to jump on board and seriously consider a telematics based car insurance product. Both groups are subject to rising or very expensive car insurance premiums and could save by making a switch to a telematics car insurance product.

Young drivers are traditionally charged expensive rates and black box car insurance can offer an opportunity to cut their premiums. Female drivers are being impacted by a new EU ruling that prohibits car insurance providers from using gender as a risk assessment factor. Despite the ruling not going into effect until December providers are already increasing rates for female drivers.

There are very good telematics car insurance policies available that will assist drivers to save on car insurance expenses. An online telematics car insurance comparison site can be helpful to a driver looking to switch and try a new telematics car insurance policy.

Black box car insurance uses a small GPS unit installed into the car’s dashboard. The installation of the unit is done professionally and coordinated through the provider. It is fast, easy and usually takes a mere 45 minutes from start to finish. Black box car insurance providers may offer the installation free or may charge a minimal fee. Once the unit is installed it begins collecting data on the young driver’s habits and skills behind the wheel. Safe driving can offer a savings on premiums as the young driver proves they are a low risk for coverage and worthy of lower car insurance costs.

There are also other benefits of choosing black box car insurance. Overall it has been proven that young drivers with black box car insurance are safer than those that do not have the product. A recent study by Co-operative revealed that young drivers with black box car insurance were 20% less likely to be involved in an accident.

Other benefits of black box car insurance products for young drivers can involve text or email alerts when an unsafe driving incident occurs and the ability to review the data collected by the black box unit online.

Black box car insurance for young drivers offers parents a peace of mind that conventional car insurance cannot and can do so at a cheaper cost.

Black box car insurance involves the use of a GPS unit installed into the car’s dashboard to record the driver’s habits and skills while on the road. This GPS unit is so precise and state of the art that it can detect quick braking, speeding, and taking corners too quickly. The same unit can also detect where the car is at any time. This is an added benefit if the car happens to get stolen and one that is usually a free benefit of choosing black box car insurance. The providers that state their product involves theft tracking will work with authorities to help recover the car if stolen.

There are many benefits to choosing black box car insurance. In reference to AA black box car insurance product Drive safe, Simon Douglas, director of AA insurance said, “It is likely to appeal to inexperienced drivers as well as parents, whose youngsters have their first car. Parents know driving behaviour is being tracked by a system that also provides crash, breakdown and theft alerts.”

The new EU ruling will prohibit car insurance providers from using gender as a factor in determining risk and cost for a driver. The ruling does not take effect until the end of the year but increases are already occurring and female drivers who now have to share the risk equally with men are seeing their car insurance costs rise. Men however are seeing their car insurance costs decrease for the same reason.

Simon Douglas, director of AA Insurance, said, “The latest figures suggest that insurers are starting to adjust their pricing ahead of the ruling, particularly for young drivers.

“After December, young women can expect to see premium increases of up to 25 per cent.”

To escape this car insurance cost increase women drivers, especially young drivers, are encouraged to consider black box car insurance which has always been gender bias free. The product does not use gender or other usual factors to determine risk but rather gathers data on the driver’s habits through the use of a GPS device. This data is then used to determine the risk and cost of the driver based on their own skills or habits while on the road.

Mr. Douglas said, “I expect this type of cover to become increasingly mainstream.

“It is gender-neutral and measures driver performance against criteria such as speed, time of day, cornering and braking and can bring significant premium reductions for safe drivers.”

If there is a claim filed and it is determined that the young driver was indeed the primary driver the car insurance provider can deem the policy void leaving the claim unpaid by the provider and the family at financial risk. All of the previous premiums will have been paid for naught and the young driver will have technically been driving uninsured.

Experts suggest that parents consider black box car insurance for young drivers. The product can offer the young driver in the family substantial savings over the cost of conventional car insurance. In some instances the savings can be in the hundreds to thousands of pounds.

Peter Harrison, car insurance expert with MoneySupermarket.com, remarked, “Fronting on a car insurance policy is illegal, and it is worrying how many motorists willingly take this risk.

“Despite the obvious attraction of cutting costs on your car insurance policy, there will be serious repercussions if you are caught falsely claiming to be the main driver of the vehicle.

“There are certainly some better ways to cut the cost of car insurance for younger drivers.”

Through the installation of a small GPS unit into the dashboard of the car, data can be collected on the driver’s habits. It will collect data such as when the driver is on the road during the day, how fast they drive, and how well they stick to safe driving habits. By keeping off the road during peak accident times such as late at night, adhering to speed limits, and refraining from taking corners quickly or braking hard a driver can prove they are less of a risk and worthy of cheaper car insurance rates.

Black box car insurance is simple to purchase as it is easily found online and free quotes can be obtained from many providers. There are black box car insurance comparison sites available that can assist a driver in choosing the right policy for their needs. Once the policy is purchased the driver can print off paperwork on their home printer and the installation of the black box unit is handled through the provider. The provider will coordinate the professional installation of the unit with the installer and the driver. Most offer the installation service to be done at either home or work while others will offer a convenient location to the driver’s residence for installation. At the moment of the installation the unit begins collecting data and helping the driver to save money.

Young drivers are historically the most likely to have an accident. The odds are high that they will have an accident the first year that they drive. Because young drivers are prone to having accidents, the car insurance providers charge them more for coverage. In some instances a young driver will pay more for their annual car insurance policy than the value of their car.

The opportunity to save on car insurance for young drivers is due to the GPS unit used with black box car insurance. The unit collects data on the driving habits of the young driver. By driving safely the data can reveal that the young driver is worthy of cheaper car insurance costs. The savings can be substantial in some cases and especially for young male drivers in the lowest age bracket.

There are some black box car insurance products that are designed especially for young drivers. Some have restrictions on driving at night which results in lower policy costs while others send out alerts when a “safe driving violation” is detected to parents.

The ability to save money as well as keep young drivers safer on the road has made black box car insurance a popular choice for young drivers.