The rising cost of insuring young drivers
combined with the dropping cost of electronics has given birth to an exponential growth in telematics insurance. Telematics is similar to the GPS that is familiar to most drivers. In the insurance industry it refers to black box electronic devices that can record information about a driver´s vehicle and transmit it to the insurance company. This information includes location, time of day, distance, speed and braking force. In case of collision, the force of impact can be recorded.
Since telematics can prove whether a person is a good driver, it can help provide young people with lower insurance rates. Telematics separates the good young driver from the general statistics for young people. For example, it can prove that a driver does not engage in racing because aggressive acceleration is easily recorded by the black box installed in the insured vehicle. Likewise, speeding is also monitored since telematics can register both speed and location.
Telematics is also known as Usage Based Insurance (UBI). In other words, your premium depends on your particular driving data and not on general statistics. Insurance companies who offer it may set up an initial premium based on predicted usage. The difference comes when actual data about the way you drive is accumulated. For instance, if you avoid driving at certain dangerous times and locations, you may get a refund either during the term or at renewal time.
In 2005, tests by Norwich Union concluded that young drivers between the ages of 18 to 23 had 20% fewer accidents after signing up for telematics insurance. In May of 2012, the Ptolemus Consulting Group estimated there to be about 2.25 million vehicles equipped with with the tracking insurance systems in the EU. The installations have been estimated to rise to 60 million by 2020. Many of these pre-installed devices are not being used in conjunction with insurance, but they can be if the vehicle owner signs up for telematics insurance. According to the British Insurance Broker´ Association, the number of live telematics insurance policies has risen 1500% from 12,000 in 2009 to 180,000 in 2012. It may be easier than you think to start using an insurance system like this on your insurance policy because you may already have the equipment installed in your vehicle.
There are several insurance companies in the UK that offer telematics insurance and that number is growing. It makes sense to look into this money saving program. Visit comparethemarket.com
to receive quotations from some of the UK´s top insurance companies. From the comfort of your favorite armchair, you can easily obtain quotations in your email. Whether you wish to take advantage of telematics insurance or only wish to look at conventional policies, take advantage of these free quotations today.