Car manufacturer Volvo is in talks with car insurance companies in a bid to secure reduced premiums for drivers of its vehicles which feature its City Safety technology.

The safety system uses laser sensor technology to judge the distance between the car and the one in front and should the gap become too small, the brakes are automatically applied if the driver fails to act, which could reduce the number of accidents and could help reduce insurance cover.

At present, the feature works at speeds of 19 mph and under.

John Wallace, Volvo Car UK's corporate sales and leasing manager said that City Safety could reduce personal injuries and offers operational improvements.

"With surveys indicating that 75 per cent of all reported collisions take place at speeds of under 18 mph and in 50 per cent of cases the driver has not braked at all before the collision, it's easy to see the potential City Safety has in reducing incidents of this kind," he stated.

The system won the technology category at today's Fleet World Honours Awards 2008.

Recent research by Ofcom found that wireless technology will be employed that would allow cars to communicate with each other to prevent crashes.

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