Motorists looking for cheaper insurance

A survey by Smartdriverclub, the connected car service, asked motorists what actions they were taking to manage their motoring costs.

The survey was undertaken as motorists face another hike in their premiums when the new rate of Insurance Premium Tax (IPT) becomes effective on 1 June 2017, rising to 12%, the third increase in two years.

The survey showed that 63% of motorist shop around for the best insurance prices as a result of this, yet only 9% have considered usage based insurance through telematics, even though it could reduce premiums by up to 40%.

Other ways motorist are looking to save on their costs include, being more conscious of fuel use (48%), using their car less (44%), delaying buying a new car (25%) and considering downsizing their car (16%).

Penny Searles, CEO of Smartdriverclub said: ‘Insurers are now required to show last year’s premium on renewal quotes which will be spurring motorists to shop around for a better quote. The problem is that it’s a cycle that will be repeated year after year unless more motorists shun traditional insurance and start being priced based on how they drive through usage based insurance.’

‘The problem is that there are many misconceptions about Usage Based Insurance – for a start you don’t have to have a fixed black box – our device is self-installed and fits under the dashboard. Also concerns about data privacy or its use in law enforcement should be allayed – the data is collected for the purposes of insurance provision. At Smartdriverclub we have gone a step further and offer a whole range of additional benefits that help customers protect themselves, their families and their pockets.’