Telematics motor insurance (also called “black box” insurance”) is one of the hot topics of the motor insurance industry in the UK. The use of telematics technology allows insurers to monitor driving behaviour and to use this information as a key factor in the pricing of insurance premiums.
Sales of telematics insurance policies are growing as more providers are bringing their “black box” products to the market. Tiger.co.uk features more telematics insurance providers than any other car insurance comparison
site and estimates that these policies now account for over 15% of sales via its site, as more motorists switch on to the financial benefits that they may offer.
There is a widespread belief that telematics is best suited to those looking for young drivers car insurance
. Figures released by Tiger.co.uk however suggest that it has a much broader appeal:
The sales summary clearly shows a significant bias towards male drivers and given the high pricing of policies for young male motorists compared to their female counterparts, perhaps this is not surprising. However, the summary shows that telematics insurance is not restricted to the youngest segments of the population: Although 17 to 24 year-olds are more than twice as likely as the average adult to buy one of these policies, 25 to 54s actually make up over 60% of all sales.
Commenting on these sales figures, Andrew Goulborn, Tiger.co.uk’s spokesperson, said: “A lot of people assume that telematics policies are only designed for young drivers because in the past telematics has been associated with driving curfews and the penalizing of the poor driving behaviours often associated with younger drivers.
What we’re seeing now on Tiger.co.uk is that many drivers who may normally pay higher than average premiums – such as those with driving convictions or with recent claims history – are finding that the range of telematics insurance policies now on offer may provide them with comparatively cheap car insurance
. With more products now being based on mileage rather than time of day restrictions and rewards for good driving rather than penalties for bad, there’s a definite appeal to the over 25 age groups.
Tiger.co.uk has just added a sixth telematics insurance brand – Carrot - to its panel of nearly 100 motor insurance brands, making it the number one choice for drivers wanting to compare these relatively new kinds of policies with a wide range of more traditional products”.