Like the credit crunch, which many are blaming for making life more difficult for hundreds of thousands of people in the UK, the current hike in fuel price is another social problem causing increasing causing worries among people.

Yet the problem has its soft underbelly. It’s seen as likely to compel car insurers to introduce policies that would see them encourage greater caution amongst motorists, in return for lower car insurance premiums. This is a positive side of the problem, which has provoked protests and even strikes from motorists, fishermen and many others, worldwide.

Whereas the protest could not stop the costs from going up, the fundamental aspect of it that must be acknowledged is that people are devising ways of positively benefitting from the crisis. The recent revelation by More Than that rising fuel price might result in the adoption of telematics-based insurance products is, as such, a step in this direction.

This prediction bothers on how drivers are forced into changing their driving attitude due to increasing costs of motoring, hiked by rising fuel price. Car insurers, at a time like this, look out for means to make drivers more careful in this respect, using incentives that would encourage them to get result.

One special policy employed by More Than is dubbed Green Wheels. This scheme allows drivers to have access to reports analysing their driving on the basis of ‘eco-driving’. While this could help in making motorists responsible on the road, it also goes a long way in saving insurers and motorists unnecessary costs that could be incurred from accidents or fines as a result of motoring offences.

More importantly, eco-friendly driving could save the entire planet the destructive impact of gas-guzzling motoring, which green campaigners say is killing the planet gradually.

More Than, which currently is the only insurer operating Telematics-based service, explained that based on the service drivers would agree to have a box fitted that monitors their driving. In this way the mileage is monitored and the premiums are lowered for those who keep within agreed mileage limits or drive within certain period of time.

In addition to the above, More Than offers Drive Time policy, which keeps the premiums of young people lower provided they avoid driving late at night. The advantage of this for younger drivers is that it will keep them out of trouble by limiting their mileage. While this is important in saving costs, it will also help them increase their worthiness in the ‘eyes’ of insurers. By avoiding trouble and even traffic offences, they could become eligible for no claims bonus after maintaining a clean slate for a period of time.

Other features in the policy include rating motorists on the basis of driving without over-revving their engines, accelerating or braking sharply, and going too fast etc. Those who avoid doing any of these are given a high eco-rating of A.

However those who choose to drive too fast or do any of the above acts, seen as inimical to the well-being of the environment, are given a G rating.

Even as this gesture is worthy of commendation and motorists may be looking forward to being part of it and saving costs, the problem is that for now, according to More Than, the data may not be used for lowering premiums.