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Connected motor insurance trends for young drivers

25/04/2022 • Edouard Boisnel

Today, car insurance for young drivers is a central issue for insurers. According to a YouGov study on the French market for lecomparateurassurance.com, there is a certain lack of interest in the world of insurance among drivers in general, but also among young people:

  • Only 12 % of French people really understand the ins and outs of their insurance contracts
  • 55% understand them on the surface, without paying attention to all the details.
  • 1 in 3 admit that some aspects are unclear or even incomprehensible
  • 25 % of young people aged between 18 and 34 admit understanding nothing about their insurance contracts.

Moreover, this phenomenon does not only affect young drivers:

  • 44% of French people feel being not sufficiently informed about their insurance contracts. The majority admit that this is due to a lack of interest.
  • 1 out of 2 French people admit to being distrustful of insurance companies.
  • 1 out of 3 French people say they have had a bad experience during a claim.

The choice of an insurance contract represents a significant economic burden for the young driver. Insurance is first and foremost an obligation before being a comfort product. It takes time to grasp the vocabulary and the advantages of insurance.

It is therefore quite logical that the perception is negative. The policyholder pays a monthly premium for a service that will possibly be provided in the future. The pricing model and the terms and conditions of a contract are often perceived as a disincentive to take out a contract.

With this in mind, the car insurance industry has had to evolve. New technologies and digital technology have been at the forefront of this change. This is why car insurance companies are now offering connected motor insurance. So how do they work and how do they create interest among young drivers?

How are insurance premiums calculated for young drivers?

The insurer must offer a service at a certain price without knowing in advance its cost. It must therefore collect a certain volume of premiums in order to anticipate the potential claims to be covered. To guarantee the balance of this activity, the insurer estimates as accurately as possible the probability of a claim occurring among its portfolio of clients.

To establish the amount of premiums to be levied, the insurer collects a certain amount of information on the customer's profile and past history. Several criteria are used: 

  • Claims history
  • Age and gender of the driver
  • Type of licence
  • Make and model of the vehicle to be insured
  • Place of residence
  • Place of parking
  • Approximate mileage achieved in the year
  • Professional use and many other criteria

Why are premiums more expensive for a French young driver?


The problem for a "young driver" or "probationary driver", who wants to insure his first car, is that an important piece of information is missing: his driving history.

Experience shows that, on average, a young driver is four times more likely to cause a fatal accident. Adding this to the lack of personal history, the young driver, however serious and careful, cannot expect to pay a truly representative premium.

In order to compensate for the risk of extra costs for young drivers, insurers charge them a premium surcharge. At this stage, the French young driver must find a way to limit this extra cost, which can take the form of:

  • A learner driver stage accompanied with family and friends: the increase applies for only 2 years instead of 3 and the additional premium paid will be lower
  • Be declared as an occasional driver on his parents’ policy, which allows them to gain experience before taking out insurance in their own name.
  • The choice of the vehicle: small and affordable

The young driver will therefore tend to fall into a generational replication model: one insures with one's parents' insurer to save money.

How is connected motor insurance changing the relationship between young people and insurers?

Today, going to an agency to take out insurance seems outdated, to say the least. Insurers have logically taken the necessary turn to digitalise their services.

Neo insurers and neo brokers have invested heavily in the web, mobile and networks, promising the best possible relationship. We are seeing the emergence of many companies that use connected motor insurance because these offers have many advantages:

  • Clear and fast underwriting
  • Better understanding of contracts
  • Simple handling of the claim when it occurs
  • Fast reimbursement
  • Fast assistance

This new experience even justifies today the use of a mobile application for the policyholder. While the frequency of contact between the two parties is low in principle, since it mainly concerns underwriting and claims management.

We are therefore seeing new connections being created thanks to digital technology with a speed of execution that greatly facilitates the world of insurance.

Connected motor insurance changes the value proposition

There are several advantages to having a connected motor insurance offer:

The price

Digital technology is enabling the emergence of new connected motor insurance offers. This is the case for young policyholders who hope to pay a lower premium for the insurance of their first vehicle.

Players such as Ornikar are committed to simplifying the driving test and making it cheaper. All those who have obtained it represent a solid customer base with a natural trust. As a result, this good relationship legitimately allows these players to push a car insurance service when the young person acquires the first vehicle.

This service has a lower price than the traditional market because there is a history of driving and validation of progress acquired during the driving school phase. Coupled with an optimised contact and communication process, it is more attractive to young people.

Moreover, digital technology, and in particular mobile applications, make it possible to go further in terms of fair pricing. By integrating DriveQuant mobile telematics, insurers have decided to position themselves on innovative pricing models


This is typically what April is proposing with the recent release of CoPilot, a mobile telematics application based on the DriveQuant white label solution. This application is linked to the Auto Primo insurance contract, specially designed for young people. The mobile application will automatically analyse drivers' journeys and determine safety and distraction scores. Depending on the scores, the young policyholders will be entitled to a cashback on their premium. To encourage drivers and reinforce prevention, the app also offers coaching and driving challenges. This helps to increase their awareness of road safety in order to prevent the accidents they are likely to cause.


Pay As You Drive: This means that you pay your car insurance premium according to the number of miles you drive. This type of car insurance is ideal for short-distance drivers.

This is what Altima offers with its Pay As You Drive offer. The offer is aimed at the light-driver segment. If the time spent on the road is perceived as a risk of damage, it can be concluded that motorists who drive less frequently are less likely to suffer damage. Thanks to the DriveQuant mobile application, supplied to Altima as a white label, the policyholder can monitor his journeys and his insurance budget per use, which is directly linked to his mileage or monthly driving time. They can also contact the assistance service if they need it.


Thus, digital technology makes it possible to simplify the underwriting process and the pricing of insurance. But that is not all: it is possible to reposition the insurer as the protector of the integrity of the insured and their property. This is made possible thanks to mobile telematics:

  • Coaching, animations and rewards to continuously improve driving
  • Accident prevention and savings on one’s vehicle to reduce consumption and wear and tear on parts
  • Road side assistance via a simplified contact or via an automatic accident recognition involving a call for help.

For example, Covea, through its Maaf and GMF brands, has chosen DriveQuant to launch a connected road safety initiative with a white-label mobile telematics application. The DriveMeUp application is freely downloadable from app stores. Regularly, challenges are published in the application and users can choose to register freely in order to join a ranking determined by driving scores. These rankings can be made on the theme of safety, distraction or eco-driving.

The best-ranked policyholders in the young age bracket can win prizes such as smartphones, tablets, fuel cards, driving courses, etc. This is an ingenious way of improving customer relations, building loyalty and helping to reduce claims and, ultimately, make the roads safer.

Environmental responsibility: a concern for young drivers

The connected insurer can find a communication relay among young people who are increasingly sensitive to ecological issues. Thanks to a mobile telematics application, it is possible to animate a community towards more environmentally friendly vehicle use.

Moovance, a young French insurtech, has chosen DriveQuant to offer insurance products linked to eco-responsible uses. Thanks to DriveKit, DriveQuant's telematics software library (SDK), Moovance has integrated into its application the components enabling it to qualify and quantify the mobility of its users in order to determine their CO2 footprint. Train, boat, bike, ski, car... different modes of transport are detectable by the application, and for the car part, the real driving behaviour is taken into account to calculate the actual CO2 spent. Thus, Moovance can encourage good practices with soft mobility, reduce the CO2 caused by driving, and simply the mileage of the vehicle.

It's a safe bet that eco-responsibility and road risk go hand in hand.