Telematics insurance receives even more praise

It could be just a matter of time before more drivers across Australia are signed up to telematics-based car insurance policies.

Drivers around the world are finding their premiums are falling significantly when they adopt the new technology.

The process works by putting a "black box" into a person's vehicle and the sophisticated recording equipment monitors the performance of the motorist.

An insurance company can then use this data to assess the risks involved when covering certain drivers. It is proving particularly useful for younger car owners, as people under the age of 25 generally have to pay higher fees because they are deemed to be the most accident prone.

British company The Co-operative Insurance has suggested that the number of crashes involving young people has fallen by 20 per cent thanks to this type of policy.

Motorists who know they are being recorded are being more cautious on the roads in order to benefit from lower insurance costs and their driving style is improving as a result.

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