In the auto insurance industry, telematics can provide driving behavior about the insured straight to the insurance company, assessing the risk of that driver having an accident and charging insurance premiums accordingly.
A recent survey shows that insurance policies in the UK that have telematics are up 15 times since 2009. The survey, conducted by the British Insurance Broker Association (BIBA), was conducted this past month.
According to the survey results, there were 12,000 live policies in 2009, whereas in 2010 the numbers were up with 35,000 live policies. Last year, numbers were up again to 100,000 live policies from a larger group of providers. Coverbox was the provider consistent within all three years.
“The dramatic increase in black box technology follows the rising cost of premiums for young drivers, the decreasing cost of technology, and new product availability from insurance brokers,” said Leighann Forsyth, BIBA’s head of communications.
“Black box” technology, or telematics, can offer savings on motor insurance of around 25-30 percent and some young drivers can save up to £1,000 ($1552.90 US dollars).
Earlier this year, Quote Me Today noted an increase in the interest of black box technology.
One recent study showed that over 50 percent of people are planning a move over to telematics insurance over the next five years, and Quote Me Today's motor trader clients say they have also noticed more interest from their customers.
Despite generally being aimed at encouraging safer driving for youngsters, the benefits of telematics are far reaching. Because the 'black box' is fitted to cars to monitor the safety details and amount of driving for the insurer, it encourages more responsibility in the driver, which reflects on their car insurance premium.
'Telematics insurance could be an interesting lead for motorists in the future and for motor traders to factor in. Because it puts the responsibility back in the driver's hands, enabling policy holders to feel they have more control over costs. However, there are a few things to look out for to make sure that this is the right option for you first,” said the insurance provider.
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Edited by Brooke Neuman