Young drivers will be paid $100 to have their speed, brakes and location monitored under a NSW government trial to reduce road deaths.

Devices would be fitted in up to 1000 cars to monitor driving habits of those under the age of 25 in real-time.

Services minister Victor Dominello and roads minister Melinda Pavey announced the six-month ‘telematics’ trial on Wednesday.

Telematics is comparable to an aeroplane’s ‘black box’.

The State Insurance Regulatory Authority (SIRA) listed the trial as being available to young drivers in Western Sydney and regional NSW only.

It will run through the CTP green slip scheme, with the promise of lower insurance premiums if a driver’s data reveals they are safe on the road.

A spokesperson for Ms Pavey told The New Daily police would not have access to the data and the trial would not be used for law enforcement.

Only the Centre for Road Safety and SIRA would have access to the data.

“We will be working closely with the Privacy Commissioner during the trial to ensure privacy is prioritised,” the spokesperson said.

Mr Dominello said the trial, set to begin in the second half of the year, would help improve crash rates for young people.

“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,” he said in a statement on Wednesday.

“We want the NSW CTP scheme to be cutting edge and this technology has the potential to reduce green slips for young drivers. Most importantly, this technology has the potential to save lives.”

In a report released this week by the NRMA, the motoring group suggested the technology be used to continually monitor drivers in their first six months of a provisional licence to improve their behaviour.

The Come Home Safe report found crashes involving P-plate drivers make up 15 per cent of all fatalities on NSW roads, with too many drivers aged between 17 to 25 seriously injured or dying.

The report recommended incentives to keep young drivers safe, such as free licenses for those who maintain a clean driving record.

-with AAP