The United Kingdom’s AA (Automobile Association) is launching a new auto insurance policy which uses “black box” technology, according to a company statement.

The AA – which is an auto breakdown service that also offers insurance -- is one of several providers to offer options for younger drivers that reward safer behavior behind the wheel. The new policy from AA is called “AA Drive Safe” and will force drivers covered under the plan to have a black box installed in their cars. The box is called a “Drivesafe” box, according to information posted on the AA website.

The black box uses satellite technology that can observe how the car is operating and how the driver is driving, according to a report from LadyMotor.com. The technology will record the time of day the car is being driven; average speed being driven; and when and how often the driver accelerates. The information will be picked up by the black box; it then goes via satellite to the AA. The AA will analyze the data and then calculate the driver’s insurance rates – entering in the data with other factors. “The safer you drive, the cheaper your insurance will become,” LadyMotor.com reports.

Signing up for Drive Safe is relatively easy. Drivers can have it fitted for their autos while they are at home or at their workplace. The AA estimates it takes about 45 minutes to put the black box in the car and fill out the application.

The cost of auto insurance will be changed monthly – if needed – as the data on driving patterns is analyzed by the AA. It is argued that younger drivers will benefit from such data analysis because they can get more affordable car insurance if they are more responsible drivers, LadyMotor.com said. It may also be well-suited for newly-qualified drivers or drivers with convictions for violating traffic laws.

On the other hand, rates can increase, too based on the results of the data. “It's important to remember your premium can go up if you don't drive safely,” the AA advises motorists on its website.

In a related story, TMCnet reported that TomTom (News - Alert) is providing technology for a new insurance product, which bases premiums on driving behavior. It is called the TomTom PRO 3100 navigation device. TomTom partnered with insurance broker, Motaquote, for “Fair Pay Insurance” – which rewards good drivers by giving them lower premiums.