The latest annual research by the British Insurance Brokers’ Association (BIBA) shows that the number of live telematics based motor insurance policies, including black box policies, has increased by 40%.
It says these types of policies offer savings of up to 25% for “careful drivers”, meaning that young drivers who often struggle to find affordable cover can save over £1,000.
BIBA surveyed the 30 leading telematics brands in the UK to determine the number of live policies currently in use in the market. It found an increase of 132,000 compared to the same time last year. There are now almost 455,000 live policies compared to 323,000 in December 2014.
The technology usually uses hard-wired ‘black boxes’ in the vehicle to monitor a number of different factors such as time of journey, speed, cornering, acceleration, braking and familiarity of route. These are analysed to give a risk profile – with the safest drivers enjoying the biggest discount.
Graeme Trudgill, Executive Director at BIBA, said, “Telematics is becoming the motor insurance solution of choice among young drivers as they can take control of their own premiums by electing to have their driving behaviour monitored. Industry statistics show there is a 40% drop in crash risk when a new driver has a telematics policy. Telematics equipment also helps reduce theft claims, many doubling as vehicle tracker devices.
“We are delighted to see these figures increasing, the benefits of a greater take-up of telematics technology are many – more affordable premiums, safer roads, reduced uninsured driving and increase personal safely because some even operate as breakdown locator.”