Simple-to-install devices ‘could help young drivers reduce car insurance premiums’

Young drivers could discover it simpler to entry the brand new technology of devices that might minimize their insurance coverage prices, evaluation signifies.

Financial scores firm Defaqto stated that automotive insurance coverage suppliers are transferring away from conventional hard-wired black containers in the direction of low-cost devices and apps that drivers can set up in seconds.

App-based “stick-to-the-screen” or plug-in-socket gadgets minimize out engineer call-outs and permit insurers to immediately begin monitoring drivers’ habits, it stated.

Defaqto, which maintains a database of economic merchandise, stated a number of embrace an “online dashboard” permitting the policyholder to evaluate their driving habits and types, and offering solutions for higher driving.

Some telematics gadgets additionally embrace options resembling computerized crash alerts or theft monitoring, which “give parents priceless peace of mind”, Defaqto stated.

Defaqto analysed its database on July 24 2025 to make its findings.

Mike Powell, motor insurance coverage skilled at Defaqto, stated: “Snap-on sensors mean young drivers no longer have to hand over their keys for a black box fitting, and that convenience often means insurers are also receiving data quicker about their driving style.

“However, not all of the new devices include the facility for automatic crash alerts or theft tracking, so young drivers may want to check with the insurance provider to see if these are available.

“Technology is still the best way to bring down insurance costs for young drivers. Soaring premiums tempt some parents to insure a child’s car in their own name and list the real driver as an additional driver.

“Insurers call this ‘fronting’. It is classed as fraud and can void cover, land parents and teens with higher future premiums and even result in a criminal record. Building a young driver’s own no-claims discount is nearly always cheaper in the long run.”

Fraser Lyall, coverage adviser for basic insurance coverage on the Association of British Insurers (ABI), stated: “Telematics in any form can reward good driving and could be beneficial to all age groups. However, any evidence of dangerous habits could cost you more, so be sure to read the terms and conditions of telematics insurance to understand the impact of your driving behaviours.

“There are other options to explore when looking to manage the cost of cover, including taking advanced driving courses, adding security features to your vehicle and increasing your voluntary excess. It can also help to shop around, but make sure you choose a policy based on your needs, not just on price.”