A new policy that is using "black box" satellite technology to rank driving behavior such as constant braking, too much use of putting the pedal to the medal in order to accelerate, and the time of day the car is driven is all the data that now will be used to calculate insurance premiums – hence, the better the car is driven, the lower the premium. Policyholders will have the ability to log-on to websites. in order to see what driving practices they frequent, in hopes to open their eyes to the unsafe activities they partake in on a daily basis.

Co-operative Insurance claims its just introduced Young Driver policy, will help to drastically reduce premiums that are, on average, much cheaper than competitors' quotes. 82 percent of young adults within the age group 17 to 25, will be able to reduce what they are paying out of pocket through this product. According to the Driving Standards Agency, a typical 18-year-old is three times as likely to be involved in a crash as a 48-year-old.

David Neave, director of general insurance at the Co-op, said: "Many young people are being priced out of owning a car due to the escalating cost of motor insurance. This innovative technology will ensure that they are given access to fairly-priced motor insurance, with the added bonus that the better their driving, the bigger the safer driving discount."

Policyholders will be able to have their driving assessed every 90 days and can then receive a "safer driving discount" worth up to 11 percent of the premium if they demonstrate sensible driving, Co- Operative Insurance claims.

Even though this is a great idea for an insurance policy, it is not the first. Formerly Norwich Union, now Aviva, in 2006 began two policies using the same technology, but they were deleted two years later due to the fact that there wasn’t a high enough level of interest. This was for various reasons, one being the technology was then very costly, as well as because insurance for younger people cost less than it does now.

Insurethebox offers mileage-based insurance, with its product entering the insurance industry in June 2010. It bases insurances costs on the mileage covered during a particular time period that is monitored by its ClearBox. It is installed free when a policyholder pays for the first 6,000 miles of cover. Good driving is rewarded with additional miles being added each month.

Safe driving campaigners love that there is now another reason for driver’s to be safe at all times , as Co-op’s new product enters the scene. Julie Townsend, director of campaigns at road safety charity Brake, said: "Young drivers are involved in a shockingly high proportion of deaths and serious injuries on our roads, causing trauma and heartbreak to many families every day. It's this high level of risk that pushes up their insurance costs. Persuading young drivers to make safer choices, like slowing down and avoiding night-time driving, is vital to prevent more lives being cut short."