Telematics policies reduce young driver crash risk
A new report presents “compelling evidence” that telematics insurance policies can reduce crash frequency among young drivers.
The ingenie Young Driver Report presents two million miles of telematics data to “paint a clear picture” of how, when and where young people drive; the risk they pose to themselves and other road users; and their receptiveness to behaviour change.
The data suggests a telematics insurance policy reduces by 40% the risk of a young driver having a crash in the first six months after passing their test. The data also shows a 21% reduction in “dangerous driving incidents” among ingenie customers in 2013-14.
The report also says that 73% of young drivers who don’t currently have a telematics policy would consider signing up to one; and 80% of those who have had a telematics policy say it helped them become safer.
Richard King, ingenie’s founder and CEO, said: “Every year, more than 490,000 newly qualified drivers take to the road on their own for the first time, and it’s a sobering thought that without telematics one in five of them will go on to have a crash within just six months of passing their test.
“Despite much debate over many years, a solution to this economic and social problem has proved elusive for successive Governments. We’re able to provide a private sector solution through technology, and our data shows conclusively that telematics has the potential to save more lives.
“There is a moral obligation – as well as a very clear economic responsibility – for Government to get behind telematics for young drivers, to publicly acknowledge the very real and significant safety benefits it offers, and provide the financial incentive needed to encourage wide-scale take-up.”
Based on the evidence, ingenie has joined forces with its insurance partner Ageas UK to call for an Insurance Premium Tax (IPT) exemption on telematics polices taken out by young drivers. ingenie says this would “allow insurers to reduce premiums and stimulate demand while the market matures”.