A "telematics" trial has been announced by the NSW government during which young drivers will be paid $100 to allow their driving behaviour to be monitored.
Young drivers in Sydney's west will be paid $100 for their driving habits to be monitored as part of a state government trial aimed at reducing the road toll.
NSW Services Minister Victor Dominello and Roads Minister Melinda Pavey announced the "telematics" trial on Wednesday which will involve a device being placed in cars to monitor real-time vehicle speed, braking patterns and GPS positions.
The trial for up to 1000 drivers under the age of 25 will be run through the CTP green slip scheme with the promise of lower insurance premiums if a driver's data shows they're safe.
The government is calling for submissions from technology companies to help run the trial which could involve a mobile phone app to alert drivers how well they've driven each day.
Mr Dominello says people under the age of 25 are at a higher risk of being injured or dying on the roads with 98 deaths in that age group in 2017.
"We need to think of new ways, creative ways, on how we can reduce the road toll," he told reporters on Wednesday.
The trial is set to begin in the second half of this year. Ms Pavey says it could later extend to other areas of NSW.
"We're starting in western Sydney because we've got five times the casualty and fatality rate than any part of the state."
Mr Dominello has spoken with the privacy commissioner about who'd be able to access the data and he insists protecting privacy "is absolutely not negotiable".
The NRMA on Wednesday welcomed the trial which was proposed in a report released this week by the motoring group.
NRMA spokesman Peter Khoury says young drivers are more likely to be distracted when behind the wheel.
The Come Home Safe report found P-plate drivers comprised 15 per cent of all fatalities on NSW roads.
It recommended incentives such as free licences for young drivers who maintain a clean driving record.