Co op Joins Telematics Car Insurance Revolution
News today that The Co-Operative Insurance is the latest insurer to offer a telematics-based policy solution for 17 to 25 year-old drivers is to be warmly welcomed. Young drivers have suffered more than most in terms of increased car insurance costs, with the AA estimating that rates for this group increased by over 50% in 2010. The use of telematics essentially creates a “pay as you drive” insurance solution, using a combination of “smartbox” and satellite technology to monitor how and how far motorists drive. This tracking ability allows insurers to better reward responsible driving. The Co-Operative’s scheme brings more choice to a financially hard-pressed group of young drivers and this can only be a good thing.
At Tiger.co.uk we’ve been aware of the growing influence that telematics insurance is having in the car insurance world – in January and February this year over 12% of all policies sold through Tiger.co.uk’s car insurance comparison service have been telematics-based. We expect this trend to continue as more telematics offerings are brought to market.
But you don’t have to be a young driver to benefit from telematics technology. Some insurers such as Insure The Box offer this solution to any driver as long as their annual mileage is restricted to under 6,000 miles. Future telematics-based products will undoubtedly extend the appeal of car insurance based on this technology to a wider range of drivers.
Watch this space!