We learned this month that Europe's judiciary thinks insurers shouldn't discriminate against young male drivers. Their judgement is that it's unfair to price people on their gender, but they're ignoring the fact that gender is secondary to the rating decision. It's behavior that's being discriminated here, not sex. If it turned out blue-eyed drivers were more likely to be involved in accidents, they'd face a price hike too.
So I'm pleased to see a new product launched for young drivers in the UK – one that trades on data that are even more reliable than market segmentations. Co-operative Insurance has introduced a product for 17 to 25 year olds that enables them to save money based on how sensible their driving is. A smart box fitted in the car records how they brake, accelerate and take corners, as well as their speed. And it's got an inbuilt curfew: drive between 11pm and 6am and you lose your rebate.
The Co-op is giving young people a chance to show that they can be responsible road users. Insurance companies that find ways to price younger drivers into the market stand to make lifetime customers. You can do it with data. Smartbox
Comments