Sales of Telematics Policies Grow
Many young drivers are finding it hard to deal with the increasing cost of car insurance policies but car insurance comparison site Tiger.co.uk reports a 25% rise in the sales of Telematics or “pay as you drive” policies.
In spite of a break in the recent well reported car insurance price rises, many studies show that younger motorists are still finding it hard to get good prices when it comes to looking at traditional young driver car insurance policies. However, telematics car insurance could be the light at the end of the tunnel. Car insurance site Tiger.co.uk is seeing a rise in sales of telematics car insurance policies, which are often aimed at young drivers. The first four months of the year show that there has been a 25% rise in telematics sales via Tiger.co.uk since January. Furthermore, more than 14% of policies sold via Tiger.co.uk are telematics policies, a figure which is predicted to rise as the year progresses.
Telematics policies, often known as “pay as you drive” or “black box” policies, involve a tracker being put in the car to record a motorist’s driving technique. Depending on the insurer this could include: What time of day the car is driven; the speed at which a car is driven; and yearly mileage. With this data the insurer is able to adjust how much the driver will need to pay based on their risk. Careful driving saves motorists money but drivers with habits like sudden braking and rapid acceleration are deemed to be riskier. These factors mean that telematics car insurance can be a more affordable option for safer younger drivers than traditional car insurance but, as shown by telematics figures published by Tiger.co.uk earlier this year, these products are also popular with older age groups.
A spokesperson for Tiger.co.uk said “We’re extremely excited by the rise in telematics sales. It shows that our shoppers are becoming more and more tech savvy when it comes to saving money. Tiger.co.uk now has four telematics insurance providers on its panel, many of whom focus on young drivers’ car insurance and we’re in discussions with more. As a result we expect to see our sales of telematics policies continue to rise.
Our sales figures show that we sell a large proportion of these to young drivers but interestingly the largest number of policies sold is to the 25-34 age group.”