AXA Ireland believes it has come up with a magic formula to turn young male drivers into sensible, responsible drivers in a "win win situation". Cheaper insurance is the carrot and the stick is a combination of self-discipline and military technology.
Introduced earlier this week, Tracksure has been billed as a device that will help reduce accidents and premiums at the same time. The scheme is being targeted at 20 to 24 year old male drivers, a group that is paying the highest motor insurance premiums.
The deal will operate like this - you promise to drive within the speed limits at all times and AXA will give you a 45 per cent discount from day one.
But this is no gentleman's agreement. It involves installing a piece of GPS (global positioning system) technology into your vehicle, which will allow the insurer to monitor the location and speed of the car 24 hours a day.
The precision of the system is impressive, with an up-to-the-minute positioning reading to within five metres.
The unit, manufactured by CEL in Tuam, Co Galway, is approximately the size of three CD boxes and is concealed in the vehicle. Working with CEL, AXA Ireland has added a new aspect to the usual monitoring functions performed by vehicle tracking systems, by mapping the speed limits for the entire road network of the State. Using this data, the insurer can get a print out of the driver's speed relevant to the operating speed limit at all times.
The requirements of Tracksure are simple - three strikes and you're out. Mr Aidan Cassells of AXA explained that drivers would have to work on the basis of zero tolerance but that there would be a warning system. At the end of the third warning communicated by AXA, you are out of the scheme.
The scheme will start off as a pilot project with 500 units. These drivers will be monitored over 12 months to see if the device has a "material and meaningful impact on accident frequency".
Policyholders who sign up for the scheme will benefit from an upfront reduction in premiums of 45 per cent but they will have to pay for the tracking unit. The device costs £950 (€1,206) in the first year, including installation and monitoring costs. The monitoring charge is £150 in year two and year three.
According to Mr Cassells, Tracksure will be reviewed at the end of the pilot period to see whether it has resulted in reduced claims. If it is a success, it will be expanded.
