Tesco Bank launches telematics insurance for young drivers

With around a third (39%) of young drivers claiming to have been involved in a collision since they started driving, Tesco Bank has launched Tesco Bank Box Insurance, a new product that tracks driving behaviour on a daily basis to encourage responsible driving, and help bring down the cost of motoring.

Two in three parents (64%) surveyed worry about their children’s safety on the roads, and nearly one in four (22%) fear their child drives recklessly, while 15% said their child learning to drive was more stressful than when they leave home, start university, or go on holiday with their friends.

To provide peace of mind, this new product includes an accident alert service which automatically contacts a call centre with trained staff, whenever a significant impact is recorded.

Two thirds (66%) of the young drivers we spoke to say regular feedback on their driving ability would encourage them to drive more safely. Tesco Bank Box Insurance allows policy holders to monitor their performance behind the wheel and provides them with feedback to help them improve their driving.

A smart little box is installed out of sight in the car, by a trained fitter, and tracks performance against six factors; speed; braking; time of day; distance; type of road and breaks taken.

The information gained is available to policy holders via their own personal web-portal and is also used to determine the renewal premium. Tesco Bank Box Insurance is a mileage-based policy, which rewards responsible driving behaviour with bonus miles.

This can bring down the cost of an annual premium over time: a positive benefit to the almost 90% of young drivers who consider their car insurance to be too expensive.

Tesco Bank Box Insurance aims to provide a competitive premium from the outset. To further help Tesco customers, a discount is available to Clubcard holders.

Karl Bedlow, managing director, Insurance at Tesco Bank, said: “Sitting behind the wheel of a car in those first few years of driving is exciting but also daunting and we want to help young drivers, and their parents, make it as safe as possible.

“The launch of Tesco Bank Box Insurance will not only help increase the safety of our younger policy holders, but also provide the same value and quality which they and their families have come to expect from Tesco Bank insurance.”