Tiger.co.uk Research Confirms Telematics Insurance Will Grow
Telematics (or "black box") car insurance is increasingly popular with drivers who have higher insurance premiums, and with younger drivers in particular. Telematics insurance uses GPS technology to evaluate actual driving behaviours and styles, giving insurance providers the ability to price policies using factors such as mileage driven, speed, accelerating and braking patterns as well as cornering speed. Other factors such as the time of driving can also be considered and factored into prices.
Mainstream insurers are taking an increased interest in the telematics market, offering or in the final stages of developing their own telematics products and adding to drivers' choice. Telematics information is usually collected by these insurers using a small box that is fitted to a car after a policy is bought, although a number of companies are now using smartphone apps as this provides a much cheaper, albeit less robust, alternative.
Independent car insurance comparison site Tiger.co.uk features more telematics insurance brands than other comparison sites and claims that these products now account for around 15% of its sales. Research recently undertaken by Tiger.co.uk provides some interesting insights into motorists' attitudes and intentions, as Commercial Director Andrew Goulborn explains:
"This month we conducted some quantitative research in the North of England and this included some questions regarding attitudes towards telematics car insurance. 44% of respondents claimed to have some awareness of telematics insurance and, given that our research was not weighted towards the main beneficiaries of this kind of product - younger drivers - we were surprised that this was so high.
We also probed into attitudes towards telematics car insurance. Almost 70% of our respondents who drive claimed that they would be willing to consider this type of car insurance policy, suggesting that there is plenty of room for growth in this area of the car insurance market.
Finally we looked at financial triggers when we asked how much money a motorist would need to save each year in order to prompt serious consideration of a telematics-based product. The tipping point was around £85, much lower than we thought and suggesting that resistance to having driving behaviour measured for insurance purposes is softening. We are anticipating increased interest in telematics policies in 2014, with greater take up as more of the better known car insurance brands develop their presence in this sector".