Telematics impact on motor insurance increasing
New analysis by Consumer Intelligence has underscored that telematics is having a growing impact on motor insurance.
Its latest Motor Daily Price Benchmarking data has revealed that the number of telematics products available has increased from 24 to 31 over the past year.
Meanwhile, telematics products now account for 29% of the five cheapest motor insurance positions in August. That figure rises to 65% for drivers aged 17 to 19 and 50% for 20 to 24-year-olds.
Catherine Carey, head of marketing at Consumer Intelligence, said: “The data shows that telematics is already becoming a fundamental part of the young-driver insurance market. But if we are going to have a serious conversation about road safety, we need to look beyond telematics as simply a way of pricing risk.
“The opportunity is to think about how the data, feedback and insight generated by these products can support safer driving, and how we make sure young drivers and their parents understand that potential.
“The fact that telematics now features so prominently in the most competitive positions for young drivers means this is no longer a niche proposition. It is already a significant part of the journey into motor insurance, and that makes the conversation about what we do with it much more important.”
