More than half of UK drivers expect to switch to telematics-based insurance

Fifty-seven per cent of drivers believe they will switch to a telematics or ‘black box’ insurance policy in the next five years, according to a new study from Gocompare.com, an insurance comparison website. The study into the relationship between driving habits and insurance found that a wide cross-section of motorists is open to the idea of telematics-based car insurance. In fact, 59 per cent of over 55s said they may switch to one of these policies in the next five years and 19 per cent of all drivers wer
April 23, 2012 Read time: 2 mins
Fifty-seven per cent of drivers believe they will switch to a telematics or ‘black box’ insurance policy in the next five years, according to a new study from Gocompare.com, an insurance comparison website. The study into the relationship between driving habits and insurance found that a wide cross-section of motorists is open to the idea of telematics-based car insurance. In fact, 59 per cent of over 55s said they may switch to one of these policies in the next five years and 19 per cent of all drivers were happy to consider it at their next renewal.

However, the research also identified the issues which have held back the sector until now, including low levels of awareness, the lack of big name insurers and evidence of real savings in terms of premiums and fuel costs. The survey highlighted the strong underlying support for car insurance premiums based primarily on the way you drive, not on age and gender, with careful drivers rewarded with cheaper premiums. Gocompare.com's research also outlined the steps the industry still needs to take to make "black box" car insurance policies more attractive to consumers.

Related Content

  • March 13, 2012
    89 million insurance telematics subscribers by 2017
    According to new research by ABI Research, insurance telematics users will grow at a CAGR of 90 per cent from 1.85 million in 2010 to 89 million in 2017.
    Read More
  • September 9, 2016
    UK drivers want to be insured against hackers
    According to a new survey of almost 1,200 people by road safety charity IAM RoadSmart, 74 per cent of drivers think insurers should provide cover for damage caused by hackers accessing control systems in driverless cars. The results of this survey have been used to guide IAM RoadSmart’s response to the Centre for Connected & Autonomous Vehicles’ consultation, Pathway to Driverless Cars.
    Read More
  • November 7, 2013
    Bit by bit insurers agree data protocol
    Telematics technology may be a game changer for the automobile insurance industry but it comes with some caveats as Colin Sowman discovers. James Bielak, (P&C) program manager at the US office of ACORD (the Association for Cooperative Operations Research and Development), has an unenviable job: to devise a standard form of communicating vehicle data between telematics providers and insurance companies. To that end he has gathered together a group composed of insurers, telematics providers and other intere
    Read More
  • July 16, 2012
    UK telematics insurance sales increased five fold in the last two years
    Research from the British Insurance Brokers’ Association (BIBA) shows that ‘black box’ motor insurance sales have increased five fold in the last two years, and are set to snowball to around 500,000 in the next two years. BIBA says that the telematics technology can offer savings on motor insurance of around 2530 per cent and some young drivers can save up to US$1,554.
    Read More

Highlighted Content