UK-based Tesco Bank has launched a new product named Tesco Bank Box Insurance to encourage young drivers aged 17 to 15 to save money and drive safely.

The new product uses telematics technology to track driving behaviour on a daily basis against factors like speed, braking, time of day, distance, type of road, and breaks taken, through installation of a smart little box out of sight in the car by a trained fitter.

Policy holders will be informed about their renewal premium on their personal web-portal.

The new product also includes an accident alert service that automatically contacts a call centre with trained staff, whenever a significant impact is recorded.

The mileage-based policy will also offer bonus miles to bring down the cost of an annual premium over time.

Tesco Bank insurance managing director Karl Bedlow said, "The launch of Tesco Bank Box Insurance will not only help increase the safety of our younger policy holders, but also provide the same value and quality which they and their families have come to expect from Tesco Bank insurance."

Arranged and administered by Insure The Box Limited and Tesco Bank Box Insurance is underwritten by Catlin Insurance Company (UK) and Great Lakes Reinsurance (UK).