Formula One technology helping bring down the cost of car insurance
Young drivers stand to save an extra £201 (12.5 per cent) on the cost of their car insurance premiums if they opt for a telematics policy, according to analysis by MoneySupermarket.com.
The UK's number one comparison site analysed 16.9 million car insurance quotes and found an increase in telematics policies being offered to younger drivers. The analysis found that 29 per cent of motorists in the 17-19 age bracket were likely to be offered the choice to opt for a telematics policy, followed by 18 per cent of 20-24 year olds. The analysis also revealed that by opting for a telematics policy, drivers could save just over £200 compared to standard car cover.
The research also found that females aged 17-19 were the most quoted group for telematics policies, making up almost a third (30 per cent) of all telematics quotes.
Telematics policies serve to make motorists more aware of how they drive which in turn can make premiums cheaper. A small black box device is fitted to the vehicle that is able to monitor a number of factors, such as the times of day you drive, how you accelerate and break as well as monitoring what types of road you use. The driver is then able to monitor their progress online and can make any adjustments to their driving style accordingly. There may be restrictions however, such as to the times in the day that you are able to drive.
Peter Harrison, car insurance expert at MoneySupermarket, said: "Telematics technology, similar to those found on Formula One racing cars is now becoming mainstream within the insurance industry. Although having your driving monitored may appear a little ‘big brother' for some drivers, the financial benefits of using this technology is a no brainer. For drivers who are considered a higher insurance risk, installing a black box device in your car can save almost £200 on the price of a policy compared to standard car insurance products.
"Premiums for younger drivers often soar into the thousands because their inexperience means the risk of them being involved in an accident is high. Having a black box fitted to the car to monitor driving behaviour not only provides an insurer with a greater knowledge of the driver, but it can also influence driving habits as a user is more aware that the way they drive is being monitored. Despite telematics being a relatively new product, there is already evidence that the introduction of this technology is helping to improve driver behaviour with less accidents, and therefore insurance claims as a result. There is also the added safety benefit of insurers being able to identify serious incidents quickly and notify the relevant emergency services with the location of an accident where the data appears to show a serious risk to a customer.
"Motorists should be aware there are some restrictions with some black box policies such when and where you can drive your car, and some ban night time driving. It is also important to be aware if the provider will charge you for the black box and installation should you choose to cancel the policy. Telematics is based on driving patterns and so is not a guaranteed way to see cost reduction. Make sure you are aware of your options and find the policy best suited to your needs by using a comparison tool as you may still find a better deal with a more traditional policy."