NSW will trial telematics to improve young drivers’ safety and reduce the state’s compulsory third party (CTP) insurance costs.

Telematics, described as a “black box” for cars, is widely used by insurers overseas to record and rate driver behaviour such as speed, acceleration, braking and turning.

“The research shows that drivers who use telematics become safer and better able to adapt to changing driving conditions as a result of the real-time feedback,” Finance, Services and Property Minister Victor Dominello said.

“We want the NSW CTP scheme to be cutting-edge and this technology has the potential to reduce greenslips for young drivers.

“Most importantly this technology has the potential to save lives.”

Up to 1000 drivers under the age of 25 will take part in the six-month trial, which will start in the second half of the year.

“Western Sydney drivers under 25 years are up to 4.5 times more likely to be involved in casualty crashes, and up to five times more likely to be involved in crashes resulting in serious injury or fatality,” Roads Minister Melinda Pavey said.

Eligible participants will receive $100 via the CTP scheme, with a partial payment at the start of the trial and the remainder on completion.