AA is latest firm to launch black box car insurance

The AA is to become the latest car insurance firm to launch a policy based on black box telematics technology.

Careful drivers will see their premiums drop with the AA Drivesafe product, which sees a system involving satellite technology installed into the policy holder's car.

The black box then monitors how the car is driven, at what time of day and its speed, meaning that premiums are worked out on actual driving as opposed to statistics.

Simon Douglas, Director of AA Insurance, said: "It is likely to appeal to inexperienced drivers as well as parents whose youngsters have their first car. Parents know driving behaviour is being tracked by a system that also provides crash, breakdown and theft alerts."

When comparing car insurance the policy will quote the driver for the year on average, but within 60 days careful drivers could see their direct debit payments reduced.

Last year Gary Lineker decided to back a new car insurance company called ingenie, aimed at 17 and 18-year-olds and basing premiums on black box technology.