According to research carried out by a popular UK insurer, telematics based car insurance
has led to a decrease of around 20% in accidents involving young drivers. Tiger.co.uk has investigated.
Telematics or “black box” motor insurance products use satellite technology to collect data on the actual driving habits of motorists looking at areas such as, braking, acceleration and what time of day a vehicle is driven. This data is then used to calculate motor insurance premiums.
The analysis, carried out by Co-operative Insurance, looked at 10,000 telematics insurance customers aged between 17 and 25 and revealed that this group were 20% less likely to be involved in a car crash than drivers with a standard policy. It also appears that drivers who choose to take out telematics based insurance have less serious accidents, as insurance claims from customers with a telematics box fitted are typically 30% less than those without.
Telematics based insurance was initially introduced in 2006 by Aviva. Back then the technology was still relatively new and quite costly to install. Since that time many more insurers have begun to introduce these products and car insurance comparison
site Tiger.co.uk has been quick to make sure it can offer a range of these products to its shoppers.
Andrew Goulborn, Commercial Director for the site commented: “It is good to hear that telematics based insurance seems to be encouraging better driving behaviour among younger drivers. As evidenced by some analysis we carried out in April this year, this type of product appears to be gaining popularity not only among younger drivers, but across the driving population as a whole. Almost 15% of policy sales through our site are now accounted for by telematics products. The industry is predicting that the growth of these products is set to continue and as a comparison site we intend to keep on top of developments in this area and continue to offer shoppers a wide range of products. We are pleased to say that we can provide car insurance quotes
from four telematics insurance providers on Tiger.co.uk currently and are in discussion with a further six providers about the potential of introducing their brands over the coming year.”