Blog: Take The Money Or Open The Box?
What was the first TV game show in the UK to offer cash prizes? If you’re as old as some of the folk in the Tiger.co.uk office you’ll now be trying to remember that Take Your Pick was hosted my Michael Miles from ITV’s launch in 1955 until 1968. And that Des O’Connor revived the show between 1992 and 1998.
The show was quite simple and the crux of it, the denouement if you will, was that the contestant had to make a choice between taking a cash prize or gambling that the contents of a locked box would prove more valuable.
So what on earth has this got to do with Tiger.co.uk and the world of car insurance?
Well, this week the Tiger boffins have been dusting off their calculators and looking at the number of telematics based insurance policies that are being sold through our car insurance comparison site. Just to remind you, telematics insurance involves the fitting of a small box to a vehicle that acts as a tracker and sends information on driving times, distances and style of driving back to an insurer. The insurer can then use this information as part of their calculations of insurance premiums.
Tiger.co.uk is particularly strong on telematics insurance. We’ve just added our sixth telematics brand – Carrot – to our growing insurer panel. We believe, along with most in the car insurance industry, that in years to come we’ll see 20-30% of the whole insurance market using products like this. The advantage for the good driver is that because insurance is priced on actual, individual driving behaviour rather than on the average behaviour of a grouping of drivers, it can offer good value for many motorists. It already accounts for about 15% of car policy sales made via Tiger.co.uk, considerably ahead of where the overall market currently sits.
So what did our boffins find? Take a look at this table for starters:
No surprise that telematics policy sales are biased towards men, given the massive premiums that most young male drivers face when first looking for car insurance.
The real surprise here is that over 60% of sales were to over 25s. It appears that these policies are generating a much wider appeal as drivers facing higher annual premiums because of factors such as claims or conviction history turn to these products in their search for relatively cheap car insurance.
Take the box and take the money? Michael Miles wouldn’t be happy with that!