The British Insurance Brokers Association (BIBA) has produced research showing that drivers with "black box" or telematics insurance policies can save between 25% and 30% on their insurance premiums. Tiger.co.uk, a leading car insurance comparison
A telematics insurance policy, which is commonly known as ‘black box’ or ‘pay as you drive’ insurance, requires a GPS tracker to be installed in a motorist’s car to track their driving behaviour. The information the tracker records depends on the individual insurance company. Typical things that are recorded and analysed are the hours at which a car is driven, how far a car is driven and how fast a car is driven, some will even track aggressive acceleration and deceleration.
Driving in a safe manner can result in lower insurance premiums for the driver, but erratic or dangerous driving may cause premiums to be increased. Telematics technology has had some mixed reviews from critics; some have referred to it as ‘Big Brother’ technology. However, savings being reported by drivers who have adopted this type of insurance have helped deflect criticism over the last twelve months. The report by BIBA has shown a five times increase in the take-up of these policies during the last two years showing nearly 200,000 drivers currently signed up – which is a positive indication that telematics motor insurance can be beneficial.
Black box technology take-up is spread across motorists of all age groups but clearly the dramatic price increases in young driver’s motor insurance recently make telematics an enticing option for new and inexperienced drivers who are trying to save money. The BIBA report confirms this and claims that in some cases young driver’s insurance
premiums can be lowered by as much as £1000 when they take out a telematics insurance policy.
Tiger.co.uk one of the UK’s leading car insurance
comparison websites has been a fan of telematics for a long time, adding its first telematics product to the panel back in October 2010.
Andrew Goulborn Commercial Director at the comparison site commented: “We have been developing our telematics products for some time and are excited to see that BIBA’s figures show that savings are being made by consumers taking out these policies. BIBA’s figures clearly show that Telematics insurance is a great way for drivers, in particular young drivers, to save money on their motor insurance. This increase in take-up shows that consumers are getting more confident in these policies and more aware of the cost savings that can be made. Tiger.co.uk now has five telematics based products featured on the site and we intend to introduce many more in the future. With telematics technology moving forwards at such a rapid rate and more and more telematics products on offer this is an exciting time for the motor insurance industry”