Research from the British Insurance Brokers' Association (BIBA) shows that behaviour based motor insurance sales have increased by 116,000, a 61% increase since June 2012.
BIBA says that the behaviour based policies, often called telematics, can offer savings on motor insurance of around 25% and some young drivers can save up to £1,000.
The technology works by recording journeys or driving behaviour so that premiums can be accurately applied to a driver's exact risk profile.
Graeme Trudgill, BIBA's executive director, said: "The rise of the new App smart phone technology will see sales of behaviour based products continue to increase. BIBA's new research demonstrates how young drivers are embracing technology and more and more brokers are launching products to meet the demand."