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Pay less for car insurance if you’re a good driver

young driver

Cut your car insurance costs with usage-based insurance.

Safe drivers, rejoice! You're now able to get lower premiums based on how well you drive thanks to the new usage-based insurance offering from UbiCar Insurance.

With UbiCar Insurance, you're given a base premium along with a minimum and maximum you'll pay for the month. Once that's set, you can hit the road along with the UbiCar Tag (a telematic device similar to a plane's BlackBox) in your vehicle and the UbiCar app on your smartphone. These two pieces of technology will track your driving behaviour and build a living picture of how well you drive. If you're a safe driver, you'll start to pay less for cover. If you're a bad driver, you'll pay more but UbiCar will provide you with tips on how to reduce your premium based on your previous driving record.

"Currently drivers are given a maximum fixed quote that will reduce in cost as their driving improves, saving them money," UbiCar co-founder Carolyn Batterton said in a statement.

This is great news for under 25s looking for car insurance. Since you can prove that you're a responsible driver, you'll be able to pay less for cover than with a traditional insurer. And if you're worried about someone else driving your car and you being penalised for their bad driving behaviour, fret not. You can just jump onto the UbiCar Insurance app and tell it that you were only a passenger for that trip.

And it's not just about saving money, Batterton said.

"Telematics technology is being used in over 20 countries and US data shows this technology leads to improved driver behaviour with an average reduction of 35% in phone distraction, 20% in hard braking, and 20% in at-risk speeding all within 30 days of using the program," said Batterton.

The new insurance product is similar to a trial conducted by the NSW Government, which is aimed at reducing the number of deaths on NSW roads each year involving young drivers. The trial installed telematics into the cars of a group of young drivers to track whether they were engaging in risky driving behaviour. A recent study conducted by found that roughly 70% of Australians engage in risky behaviour while behind the wheel, with 34% admitting to using a phone while at the wheel.

In car news

Picture: Shutterstock

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