Co-op launches pay-as-you-drive policy
by Gill Montia
Story link: Co-op launches pay-as-you-drive policy
Co-operative Insurance has launched a pay-as-you-drive policy, aimed at helping young drivers.
According to research by the mutual, the UK’s young drivers saw the average cost of motor insurance rise by four times the rate of inflation in 2008.
Premiums for under 25-year-olds increase 11.5% to an average £1,463 and Co-ops director of general insurance, David Neave, comments that with the trend set to continue “a whole generation could become uninsurable”.
The insurer is launching the new policy as part of it’s ongoing “2 Young 2 Die campaign” in the belief that the “black box” technology that must be fitted in the vehicle could help young drivers manage their exposure to risk, at the same time as reducing the cost of their insurance.
The technology is provided and installed by Coverbox at no charge and uses a GPS system to record journey times and locations.
Premiums can then be calculated on an individual’s actual risk, which the Co-op maintains can equate to comprehensive cover for as little as 1p a mile for the safest journeys.
More mature drivers may also benefit from the policy if they rarely travel during rush hours or at night.