Motorists in Northern Ireland could soon be getting “Pay How You Drive” black boxes installed in their cars to bring down the extremely high insurance costs that are as much as 70% higher than in the rest of the UK.
The DOE minister Alex Attwood is meeting with insurers to discuss how this can be implemented.
This is the same kind of black box technology that is installed in aircrafts.
About 25% of new drivers have a collision within their first 6 months of being on the road. Young motorists are twice as likely to be responsible for a fatal or serious motoring accident that experienced drivers.
Mr Alex Attwood said: “Departmental officials have also been exploring with the local motor insurance industry representatives the potential availability in Northern Ireland of young driver ‘Pay How You Drive’ insurance products linked to in-car technology capable of monitoring driving performance.”
The technology is implemented by installing a small black box inside the car. Drivers speeds, steering and braking habits are then recorded using GPS satellites.
Cheaper car insurance for young drivers in Northern Ireland
The scheme will be aimed at drivers under 25 years of age. This could potentially mean a reduction in the cost of premiums for young drivers in Northern Ireland. Evidence of good and bad driving will be collected.
The down side to this is that bad drivers could have their insurance policies cancelled.
According to statistics the 17 – 24 year old age group were responsible for a quarter of all fatalities in Northern Ireland. The number of deaths attributed to inexperienced drivers was 163, between 2004 and 2008.
“The point of the exercise over the next five months is to see… if we can find what more can be done to find a remedy to the problem of higher rural quotes and higher premiums,” he said.
Mr Attwood is establishing a group to review road safety measures and will be meeting today with British insurers to discuss what other systems could be in place. Measures favoured by the industry include a ban on night time driving and restricting passengers to family members for new drivers but Mr Attwood has not endorsed those positions.
He favours increasing the speed at which restricted drivers can travel to create more realistic conditions in places like motorways. Other potential options include extending the period a driver is restricted or granting provisional licences earlier but stipulating a minimum period before they can obtain a full licence.
Consumers groups have argued that there is not enough competition in the market, with high claim payouts in the courts partly to blame for companies failing to establish offices in Northern Ireland.
The minister added: “There is a contradiction that some don’t come here but Tesco do. If people are staying out of the market because of higher claims and higher damages you would think that others like Tesco would be staying out.”