The AA announced this week that they’re also going to offer Satnav  telematic insurance. Effectively a method to change insurance premiums depending on how well you drive and adhere to speed limits etc.

Initially, as with Aviva, they view this as a way to more selectively insure younger drivers. Massive 30% discounts for people driving well.

The industry views this as a trend likely to extend over time to most vehicle insurance policies. This has to be one of the most promising road safety technologies going forward. If the majority of drivers were so monitored collisions and driving standards would make a step improvement.  

Driving with more care should also mean greener driving – less frantic acceleration and braking – so good for the environment as well.

Good luck AA – I hope this new product does exceptionally well.

Perhaps something for the government to encourage – perhaps applying VAT even at the lower rate to vehicle insurance that doesn’t have such telematic encouragement of better driving.