Telematics Insurance: How does it benefit you?

Telematics Insurance has certainly evolved over time. In terms of data and its popularity, Telematics is now so widely known that nearly 455,000 insurance policies in the UK are Telematics Car Insurance policies.

For years, people have been looking for ways to reduce insurance costs and find policies more suitable to their needs and requirements. For Young Drivers in particular, Telematics Insurance meets many of these requirements.

What is Telematics?

Telematics is the technology used in Black Box Car Insurance. It involves a 'black box' device being fitted to a vehicle which then measures a person's driving performance.

Telematics Insurance (often referred to as Black Box Car Insurance) allows people to prove how good a driver they really are. It involves the 'black box' measuring data such as: breaking distance, speed, acceleration levels and the times of day you drive. This information is collated and is reported to the insurer. Over time, the insurer will be able to gauge an image of how good a driver you are, thus, upon your renewal, this information will be considered when calculating your premium.

The benefits of Telematics Insurance

There are a multitude of benefits when it comes to taking out a Telematics Insurance policy as opposed to a standard insurance policy, particularly for Young Drivers. Some of these benefits include:

• A fair premium price offered, where your driving performance will be factored in
• Ability to monitor and review your driving techniques
• Improve your driving techniques where necessary

These benefits have a wider impact on Young Drivers. This is because they are the ones who are often subjected to higher insurance premiums. This could be due to the poor claims experience of other young drivers. Proving an individual is a good driver through Telematics data can allow the insurer to rebalance this.

The Research

Research from Teradata (a company who specialises in Big Data Analytics, Marketing Applications and Data Warehousing) has recently revealed that the insurance industry in the UK is prioritising big data strategies in 2016.

The research looked at data such as IoT data (Internet of Things). Within this data, it was found that three quarters of UK insurers declared themselves as "very well equipped" when it comes to Telematics Car Insurance. Given that not so long ago Telematics was a niche market, it would now seem it is in the opposite end of the spectrum. More and more insurance companies (in addition to policyholders) are taking Telematics and its benefits seriously.

Stephen Brobst, who is the Chief Technology Officer at Teradata commented:

As long as companies say what they do and do what they say, that is key. If I allow, as a consumer, an automotive insurance company to collect the data on my driving habits that allows them to see I am a better driver than the rest... It is outrageously stupid to be put in the same risk pool as bad drivers.

As more and more drivers are converting to Telematics Insurance policies, more and more people are seeing the benefits at their renewal. If huge insurance companies are looking into big data, maybe you should too?

Research from the comparison giant uSwitch has found that 60% of people would now consider Telematics Insurance to reduce the cost of their insurance premium. In total, uSwitch has noticed a 66% increase in the amount of sales of Telematics policies sold in the last year.

Here at Safely Insured, we understand the value of Telematics. Visit our Telematics Insurance webpage or Black Box Insurance webpage for further information.

More Information: Young Drivers Insurance