Figures released yesterday (14 March) by the British Insurance Brokers’ Association (BIBA) show that the number of telematics based insurance policies increased by 40% in 2015.
A survey of the UK’s 30 leading telematics brands showed that there are now almost 455,000 live policies in the UK, compared to 323,000 in December 2014.
The technology offers young drivers the prospect of a reduction in insurance costs in return for evidence of their safer driving. It 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.
Telematics has also been linked to improving the safety of young drivers. In 2014, ingenie’s Young Driver Report suggested that the use of telematics reduced a young driver’s risk of crashing from one in five to one in eight.
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.”