With young drivers being increasingly priced out of the insurance market a leading automotive technology company has called for a rethink in the way insurance premiums are calculated. Cobra UK, provider of security, safety and telematics solutions for the automotive and insurance industries, believes a switch to driver-based rather than car-based policies could turn around the trend that has seen the UK motor industry lose its young car buyer base.

The 2010 Department of Transport National Travel Survey found that two thirds of 17-21 year olds did not hold a full licence, with 34 per cent of that group saying that insurance costs were preventing them from learning to drive.

"If insurance prices are deterring and preventing younger drivers getting on the first rung of the insurance ladder it's time to change things." said Cobra UK Managing Director Andrew Smith.

Cobra UK proposes a move to a telematics based system that measures key outputs such as times and distances, fuel consumption, mileage, average speed, top speed, location, journey type, cornering dynamics and accelerations and decelerations.

With Cobra telematics already being used by Co-Operative Insurance in its Young Driver Behaviour Insurance policies Smith believes that "Manufacturers and their dealers have to sit down with the insurance companies to see how they can speed up the process of moving to a driver behaviour based insurance platform before we lose the new and used car buyers of the future."

Paul Healy - 10 Oct 2011