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AA to install a black box in customers' cars with a promise of cheaper premiums

The Automobile Association is planning to introduce a new insurance policy that exploits sat-nav technology, in order to monitor driver performance - according to new reports.

The AA is going to install a small black box into all its customers' cars in order to monitor and evaluate how good they actually are in driving. The new offering will reward its customers with better driving skills and with cheaper premiums.

"The point is that these sorts of devices firmly put in the hands of the driver a responsibility for driving safely. It makes you think," AA spokesman Ian Crowder stated, as reported by BBC News.

"All the anecdotal evidence suggests that people who have installed the system have about a 30% better claims experience - in other words, less crashes," he added.

Interestingly, the move taken by the company follows similar efforts put up by many of its smaller rivals.

Direct Line, one of the largest insurers operating in the country had also briefed BBC News that it was also planning a similar move, by introducing a new "black box" scheme.