Are spy boxes the key to cutting car insurance premiums?

With the effects of the global recession still hitting the pockets of cash-strapped motorists in the UK, those who have managed to keep their vehicles despite the increasing costs of insurance and fuel prices have been looking for innovative ways to cut costs. We all know the usual ways of cutting back on insurance premiums, with adding a named driver or two usually a safe option, whilst some of the more illogical alterations such as definition of career always seem slightly strange.

However, one method of cutting the cost of insurance for young drivers that you may not have heard about is installing a new ‘spy box’ in whatever vehicle is being used by the respective driver. With premiums over the past year rising by as much as 50%, young drivers are bound to see no drawbacks to using the new device, which uses GPS technology to send information to the insurance company providing the driver with the policy.

The device keeps track of details such as driving habits, speed, locations being driven in and around on a regular basis, and the rates of both acceleration and braking. Prices should subsequently be reduced by the insurance company if the signals sent back from the spy box point towards careful and responsible driving.

With the boxes also able to act as tracking devices using GPS technology, cars with the devices installed are far more likely to be recovered if stolen than those without them. It therefore seems that this is one innovation in the car insurance industry that may be here to stay for the long haul.