Redtail Telematics commissioned research in partnership with YouGov, whereby 1,500 UK drivers were surveyed regarding their attitudes to using telematics-based insurance policies. BIBA (British Insurance Brokers’ Association) analysis has revealed that there are nearly one million telematics policies live in the UK - an increase by almost 30 per cent on the 2016 figure.
The survey of 1,500 UK drivers were asked “What percentage of your current car insurance if any, do you think you could save if you were to switch to telematics-based car insurance?”
• 43% said they were unaware of any potential savings offered through the use of telematics
• 14% thought that they could save of up to 10% on their premium
• 10% stated that they could save nothing by switching
Obtaining cheaper car insurance, being incentivised financially to drive safely and have improved awareness of their driving style was considered three of the incentives for choosing telematics-based insurance policies by those surveyed.
New or younger drivers can net big savings by opting for a telematics insurance policy. For example, for an eighteen-year-old driver, using telematics can achieve a premium of £1506 with Wise Driving Black Box, whereas the cheapest non-telematics premium was £2490 with Churchill.
The appeal of telematics policies is broadening as a way for all drivers to access lower premiums. Redtail Telematics’ customer By Miles offers pay-as-you-drive policies whereby they price by the mile and only use the distance driven (no driver scoring or curfews) thereby bringing telematics out of the youth market and offering the benefits of smarter, fairer pricing to a far wider audience.
Telematics involves having a small device fitted to your car that records the speed, distance travelled and time of the day the car is driven.
Telematics also monitors motorists’ driving style by recording braking pressure and speed of acceleration. This information is relayed to the insurance company and in some cases you’re rewarded with a discount or other things for good driving. The downside is that your premium could go up or your insurance might be cancelled altogether if you drive badly or break curfews that are in the policy.
Commenting on the Redtail Telematics/YouGov research, Redtail Telematics CEO, Dr Colin Smithers said: “The benefits of using telematics for motor insurance purposes are widely documented and are reinforced by the recent BIBA figures highlighting continued growth and popularity of telematics-based motor insurance amongst consumers. With the average cost of an annual car insurance policy rising, the appeal of telematics policies is broadening as a way for all drivers to try and access lower premiums.”
|
