Young British drivers (particularly male ones) who feel they are constantly discriminated against when it comes to insurance premiums may have been given cause for hope over the last few months as insurance companies have begun to road test a new smart-box to go under the car. The smart-box will accurately gauge how the driver handles the car and report back to the insurance company who will then tweak the insurance premium.

The so-called smart-boxes will be a boon to seventeen year old males anxious to get out in their new (or second hand) cars, driver’s license freshly printed and in their back pocket, who find themselves dealing with horrendously overpriced premiums because they are classed in the same category as boy racers. Instead, the smart boxes send the digital telematics from the car by satellite to the insurance company who will then monitor the driver for braking, accelerating, cornering, speed and driving style. If the smart-box records any excessive braking or cornering, or G force, or even if it records you driving for a long period of time, then that driver’s insurance premium will rise.

The AA has already begun using the smart boxes, charging their younger drivers according to the number of miles that they do and making them pay for 5000 miles in advance. Once those miles have been used, they can then purchase more miles, but if they have driven dangerously, they will not be permitted to buy any more miles. On the other hand if they have driven safely, the price of those credits will go down.

The smart boxes were developed by a British business called Insure The Box and have also been taken up by the Co-op. They give the drivers 90 days and if you drive well for those 90 days then you get a percentage of your initial premium returned. However, if you have driven like Nigel Mansell then your insurance premium will wither rise or will be cancelled completely. They also give you warnings first however, sending you alerts via text to let you know how they think you are driving.

If all that seems a bit over the top then just remember the story of young James Redshaw who opened the insurance quote for his £2000 Vauxhall Corsa to see a quote at the bargain price of £33000.

Matt is a journalist and financial blogger. He currently writes a blog on consumer finance, covering everything from tax to term life insurance and whole life insurance .