Tesco Bank has launched a pay-as-you-drive telematics policy aimed at young drivers aged between 17 and 25.
The Tesco Bank Box Insurance policy awards bonus miles if young people drive well, resulting in lower premiums on renewal, and includes an alert service that automatically contacts a call centre in the event of an accident.
The policy, which is administered by Insure The Box Limited and underwritten by Catlin Insurance Company and Great Lakes Reinsurance, is based on a telematics box installed in the car.
The box tracks the young driver's performance against 6 factors:
3 time of day
5 type of road
6 breaks taken
The information gained is fed to policy holders through a personal web-portal so they can monitor their own performance.
"Sitting behind the wheel of a car in those first few years of driving is exciting but also daunting and we want to help young drivers, and their parents, make it as safe as possible."
Research conducted for Tesco Bank by Vision Critical on a sample of 504 drivers aged 18-25 and 1,003 parents of children who learnt to drive found that 39% of young drivers said they had been involved in an accident.
Two thirds of young drivers said that regular feedback on their driving ability would help them to drive more safely. Among parents, 64% worried about their children's safety on the roads and 22% feared that their child drove recklessly.