Telematics on the rise
The number of insurance policies with telematics black boxes have risen by 40% in a year.
A new study by the British Insurance Broker’s Association has found that nearly 455,000 drivers in the UK now have an operational telematics black box in their cars compared to 323,000 at the end of 2014 and just 12,000 in 2009.
The black boxes measure a range of data from the car surrounding driving habits and journey times to build a risk profile of the driver, which influences their premiums. They are particularly popular with young drivers, not only because they have a positive impact on the way they drive, but they can result in savings of up to 25%.
Graeme Trudgill, executive director at BIBA, said, ‘Telematics is becoming the motor insurance solution of choice among young drivers as they can take control of their own premiums by electing to have their driving behaviour monitored. Industry statistics show there is a 40% drop in crash risk when a new driver has a telematics policy. Telematics equipment also helps reduce theft claims, many doubling as vehicle tracker devices.
‘We are delighted to see these figures increasing, the benefits of a greater take-up of telematics technology are many: more affordable premiums, safer roads, reduced uninsured driving and increase personal safely because some even operate as breakdown locator.’