Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Young drivers with telematic insurance are three times safer

Blog
8th February 2018

When talking to people about telematics-based car insurance policies I often see quite negative reactions. People often fear a loss of privacy if their insurance company can monitor exactly when, where, and how they drive their vehicle. However, they are exploding in popularity in the UK at present.

The British Insurance Brokers’ Association (BIBA) recently published data showing that 975,000 telematics-based policies were now active in the UK at the end of 2017. Almost a million people are now happy to have a ‘black box’ in their car monitoring their every move.

This is growth of 30% on the 2016 figure so the market is growing fast and it is having a dramatic impact on both the way that insurance is sold and road safety itself. The telematic specialist insurance company Marmalade says that their drivers with a telematic policy are 3 times safer than the average driver in the UK. That’s astounding – knowing that the car is being monitored has an enormous effect on safety. It’s like young teenage drivers being forced to carry their mum and dad in the back seat every time they go out.

But far from being a negative technology for young drivers, this can enable car ownership for them when otherwise it might be impossible. The average policy for a teenage driver in the UK is now several thousand pounds a year. If the driver can prove that they are a low risk and safe driver then they can immediately benefit from substantial reductions in the price of their insurance.

Since 2011 road casualties in the UK have dropped by 31.07% for 17-19 year-old drivers compared to an 11.06% reduction for the rest of the driving population. We are seeing a complete reversal of the old attitude that young drivers are the biggest risk – in fact they look like a better risk for the insurance company than older drivers who generally don’t use telematic-based policies.

BIBA is lobbying the government to reduce tax on insurance for younger drivers choosing to use a telematic-based policy, but I would argue that with statistics like this, why don’t they push for a significant price reduction for all drivers who are prepared to use this type of insurance?

Let me know what you think about telematic insurance. The statistics look fantastic, but would you be worried about revealing your location and driving data constantly to your insurance company? Leave a comment here or get in touch via my LinkedIn.


David Turner
Article by: David Turner

News & Insights

Solution Designer
Service Provider
Technology Enabler
Blog
Travel Sector Trends for 2019

The media spotlight has been firmly on the travel industry in the past few weeks, with the demise of high street giant Thomas Cook and the surprise store buy out by Hays Travel (saving over 2500 jobs) filling newspaper column inches. In preparation for the IQPC Exchange for Travel and Hospitality, Webhelp Business Development Director, Kellyann McCafferty, looks at 5 significant trends for 2019...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
Another Award winning year for Webhelp and Sky

It was a successful night for global customer experience expert, Webhelp, and leading telecommunications provider Sky, at the UK Customer Experience Awards yesterday. The fiercely competitive awards, which highlight excellence in the CX industry, were held at London’s Wembley Stadium. In a...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
Webhelp hosts industry discussion on generational differences and their impact on CX

Webhelp hosted the second of our Disruptor Dinners at the Shangri-la at the Shard in London yesterday, as part of our highly regarded yearlong series, which examines and identifies significant disruptors of Customer Experience (CX). This session looked at the impact of changing generations on...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Whitepaper
Generation: Cohort views on CX and the workplace

The Webhelp Disruptor Series Part 2: Generation: Cohort views on CX and the workplace This paper reveals the results of our exclusive YouGov study on age-influenced attitudes to multi-generational working and customer experience, as well as gathering informed viewpoints from sector leaders,...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Case Studies
[Fashion] Fifty Jeans – Launch your brand without cashflow problems!

...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook