The number of telematics insurance policies in the UK has now reached over a quarter of a million, according to new research from the British Insurance Brokers’ Association (BIBA).
The number of live policies is now 751,000, a 65% increase on the 455,000 policies reported by the research in 2015.
The reason behind the jump is due to the number of insurers now offering telematics-based insurance policies to their customers and volunteering information about them. On a like for like basis, the rise in policies was 23%.
Graeme Trudgill, Executive Director at BIBA, said: “It is encouraging to see such a big take up of telematics policies. Motor insurance premiums for young drivers are higher than for other drivers because statistically they have more accidents, but the safety advantages of telematics help to reduce users’ premiums.”
Telematics insurance can offer savings of up to 25% for safe driving practices. By analysing specific information such as speeding, harsh braking and hours of use, insurers are able to build up a more accurate risk profile of their policyholder and identify those drivers who are most likely to be involved in an accident.
Mike Ketteringham, CEO of BIBA member ingenie, said: “Telematics insurance makes a huge difference to the safety of a young driver, particularly when coupled with effective feedback and education. The soaring number of black box policies is great news and shows we’ve reached a tipping point where young drivers and their families appreciate that telematics is a better option financially, and are willing to work alongside us to reduce crashes.”
Specialists in insurance for young drivers, Marmalade, has seen exceptionally positive safety results amongst its telematics insurance policyholders. According to National Statistics, one in five young drivers have an accident within the first 6 months of passing their test. With Marmalade however, that figure significantly improves threefold to only 1 in 16.
Graeme Trudgill concluded: “Telematics policies are a win for everyone, they make roads safer, provide cheaper premiums for young drivers and provide savings for Government.”
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