The technology and design of automobiles nowadays has made huge forward advances over the years.

Vehicles are now focusing on fuel economy and their impact on the environment. However, it is technology that can be transferred in and out of the vehicle that could make a difference to how much you pay.

As we become more reliant on our vehicles for everyday life, many remain disillusioned as to the rising cost of their insurance premiums, and it is usually younger drivers who bear the brunt of the blame.

Due to the stigma attached to younger drivers, which usually associates them with offences such as joyriding and car theft, many are increasingly worried that their actions could have an effect on the world of car insurance.

With under-25s feeling the pinch when searching for car insurance, many feel they are being punished due to the actions of a small percentage that choose to commit auto offences.

However, could GPS technology hold the key to not only bring down crime levels amongst youngsters, but also help lower the cost of our insurance premiums?

With plans to introduce GPS technology into vehicles, and some insurance companies looking to branch out into ‘pay-as-you-drive’ policies, soon your driving habits could help contribute to the cost of your premium.

Indeed, several provinces in Canada have already put such a scheme into place, using GPS ankle bracelets in order to keep track of the worst offenders when it comes to automobile incidents.

Through the use of alert systems that are activated when the offender crosses into an ‘exclusion zone’, the authorities are able to keep tabs on where offenders are and where they should be.

By contacting them by use of mobile phones – also fitted with tracking devices – when they step outside their boundaries, the chances of intervention before they commit further crimes are increased.

And the technology appears to be having an effect – both on crime rates and car insurance premiums – in the provinces that the technology has been introduced to.

By: David Collins