video transcript

Car insurance premiums can be expensive at the best of times, but especially if you're 20 and your car is new. After getting his license earlier this year, Adam Willett researched his options. (SOUNDBITE)(English) 20 YEAR OLD DRIVER ADAM WILLETT SAYING: "I went onto the price comparison websites and the cheapest deal I could get from that was about 7,000 pounds. And that went all the way up to 16,500 for just third party, fire and theft." Adam cut his premium by almost two thirds by installing this little 'black box.' It uses motion sensor to monitor his driving technique. (SOUNDBITE)(English) 20 YEAR OLD DRIVER ADAM WILLETT SAYING: "Initially it's quite a daunting sort of prospect, someone always watching your driving. But I think as a whole it actually encourages you to drive better because you know someone's watching how fast you're going, how fast you're cornering, how hard you're braking. It sort of allows you to improve your driving." "Young Marmalade" offers young drivers cheaper premiums if they buy a new car from them and agree to have their driving monitored. Nigel Lacy is a spokesman for the company. (SOUNDBITE)(English) YOUNG MARMALADE SPOKESMAN, NIGEL LACY SAYING: "It really is going to be the only way that young drivers are going to be able to get insurance in the future. Yes we accept it's "Big Brother", but the insurance companies only intervene if you're doing something wrong, if you're doing something right, they don't trouble you at all." Drivers are allowed one "red journey" a month. The next mistake will raise their premium by 250 pounds. Driving information is sent back to the insurance company - and there is room for flexibility. (SOUNDBITE)(English) YOUNG MARMALADE PR, NIGEL LACY SAYING: "There may be a situation where someone has to do an emergency stop. That will show up on the system. But as they know it's an emergency stop, the insurance company would prefer them to have to stop, rather than crash into somebody. So there are situations where we can review the journey." Britain's Office of Fair Trading is launching an investigation into the country's 12 billion pound car insurance market, after premiums were found to have risen by as much as 40 per cent over the last year. The 'black box' technology might eventually offer older drivers some financial relief too. But for now, young drivers are seizing the opportunity to turn a corner in their finances thanks to big brother watching them. Kirsty Basset, Reuters.