Drivers unaware of rewards for good driving
The thought of having a telematics device fitted to their car may worry some drivers, and many drivers have not even heard of Telematics technology. However, Confused.com has come up with a solution: the ‘Confused.com MotorMate' driving app which is now available on Android and launched today on iPhone to coincide with the launch of the iPhone 5.
Confused.com MotorMate allows drivers to monitor their driving behaviour by using their mobile phones GPS. The app assists drivers in finding out about telematics and how they can be rewarded for good driving. The app is free to download from Google Play and Apple's App Store.
With the introduction of telematics devices, safe drivers may no longer have to pay the same high car insurance price as someone who drives like a ‘bat out of hell'. Telematics devices, which monitor a driver's skill and reward good driving, are becoming increasingly popular, according to car insurance experts at comparison site, Confused.com, who now have several telematics providers on their panel and have their own telematics app. However, new research also shows that many drivers remain unaware that they could be rewarded for good driving.
Almost two out of five drivers (38%) say they would consider having a telematics device fitted in their car. However, almost half (47%) of drivers have told Confused.com that they are still unaware of the new telematics, or black box, devices, which can reduce car insurance costs for careful drivers. Once they know about the boxes, saving money is a motivator for 86% of drivers, and deterring theft by using a black box as a tracking device is a motivating factor for 43% of drivers.
What is telematics?
Telematics insurance, Black box insurance, Smart box insurance, Pay As You Drive, Usage Based insurance (UBI) are all terms used to describe the latest generation of personalised car insurance solutions based on your driving style. An increasing number of insurance providers are offering drivers a telematics device as a means of reducing car insurance premiums. The device is installed in your vehicle and the way you drive is reported back to your provider. Responsible safe driving is rewarded by offering lower premiums that reflect that you represent less risk to the insurer.
Young drivers are most likely to consider having the devices fitted: 40.5% of 17-24 year olds say yes they would consider getting a telematics device fitted, compared to an overall average of 38%.
What 17-24 year-old drivers told us:
29% of young drivers would have a device fitted if it meant their parents would pay for their insurance
15% of young drivers say their parents already pay for their car insurance.
19% would not have the device fitted even if their parents paid, as they would not like their parents to see how they drive.
43% of parents whose children are young drivers would pay all or part of their child's insurance if they knew how and when they were driving, 21% would contribute regardless.
Fathers are less likely to contribute to their child's car insurance than mothers (24% of men would not contribute compared with 21% of women)
Regionally, London has the least awareness of telematics:
Just 36% of drivers said ‘yes' they have heard of telematics, black boxes or pay-as-you-drive technology, compared to a national average of 44% and just 34% of London's drivers say they would consider having one of the boxes installed, as opposed to Northern Ireland where a whopping 54% of drivers say yes to the idea of the devices.
Significantly more men than women (50% vs. 39%) have heard of this new technology, but interestingly a similar number of men and women would consider having the devices fitted: 38% of women and 39% of men.
Joanne Garcia Head of Emerging Products at Confused.com said: "Telematics offers drivers the chance to save money on car insurance. Although the benefits are there for all drivers, it can be especially welcome to younger drivers considering that 17-20 year olds are paying an average of £2,491 for a comprehensive car insurance policy."
"Offering our customers our Confused.com MotorMate app allows customers to try the telematics experience without having to commit. The app lets us reward our customers for being good drivers. By using the app, drivers can really understand how they drive and over time, improve their driving skills, making them a safer driver and hopefully making our roads safer too."
Kevin Clinton, Head of Road Safety at the Royal Society for the Prevention of Accidents (RoSPA) said: "RoSPA believes that driver telematics will become much more widespread over the next few years. Telematics can help people to significantly improve their driving and reduce their risk by identifying risky types of driving, such as sharp acceleration or braking, speeding and sharp cornering, and then providing advice to them on how to drive more smoothly and safely. Using this within an insurance policy that rewards drivers for safer driving provides a powerful incentive for people to improve their driving skills."
Anyone interested in finding out more about telematics can download the free Confused.com MotorMate app. More information here: confused.com/car-insurance/motormate