Telematics Insurance Sales Update
Leading car insurance comparison site, Tiger.co.uk, has today revealed that telematics-based motor insurance policy sales now account for some 15% of polices sold through the site.
Telematics insurance requires the fitting of a box about the size of a mobile phone to a car and the box uses GPS technology to monitor driving habits. Data collected can include the number of miles driven, the time of day when the car is driven, accelerating and braking. This data is then used to calculate motor insurance prices. Telematics insurance policies are currently especially popular for young drivers’ car insurance, where premiums are much higher than those for older drivers.
Tiger.co.uk’s, which provides quotes from four telematics insurance providers, has reported that sales of this kind of policy have increased from around 12% of policies sold in January to 15% in May.
Andrew Goulborn, the site’s Commercial Director, reflected on this sales growth: “We've seen a big growth in sales of telematics-based insurance products this year and the launch of more products, some from major insurance brands, will undoubtedly ensure that this trend continues. We expect to have another four brands on our site in the next few months. For many Tiger.co.uk site shoppers, especially those looking for car insurance for young drivers, these policies provide better value than ‘standard’ policies. Drivers buying them like the fact that their insurance prices are based on their actual driving behaviour and that careful, safer drivers can benefit from this.
Additional benefits from having a telematics box installed are also significant. The boxes are also a tracking device in the event of a vehicle being stolen and can be used to notify the emergency services in the event of very sudden deceleration that indicates that a crash has occurred.
By the end of 2012 we expect that telematics products will account for 20% of Tiger.co.uk car sales, driven by more suppliers coming into the market and the introduction of smartphone-based solutions. We also expect car manufacturers to start fitting these boxes as standard”.