Nineteen percent of motorists will consider taking out a telematics-based insurance policy at renewal, according to a new poll by market research firm Consumer Intelligence.
Consumer Intelligence quizzed 1,571 UK drivers in an online survey in September. Telematics-based policies monitor driving behaviour, typically using a car-mounted black box or smartphone, and reward good driving with lower premiums or other incentives.
Consumer Intelligence said only 4% of drivers currently have telematics devices fitted to their vehicles, but the research shows increasing acceptance of the technology.
The company also noted the rise in launch of new telematics-based insurance products. A recent example is the SoteriaDrive smartphone-based policy launched by broker technology firm SSP and telematics specialist Wunelli.
The survey also revealed a high awareness of technology. Eighty percent of drivers know telematics is available and 25% of those questioned by Consumer Intelligence believe the target market for telematics is all drivers.
However, more than 57% believe that young drivers are the target market for the product.
Consumer Intelligence chief executive Ian Hughes said: “With nearly one in five drivers saying they would consider a black box policy at their next renewal date it is clear that the market is changing.
“There is, of course, a difference between considering and actually buying, and the number [of drivers] who have black box policies remain relatively low. However, the launch of new products for the market and increasing acceptance of the benefits of black box policies will mean the sector should grow.”
According to Consumer Intelligence, pricing is key to acceptance of telematics.
Fifty-two percent of drivers say they would consider a policy that was attractively priced to reflect annual mileage, with the possibility of a refund if their annual mileage was less than anticipated.
This compares with 47% who would consider a policy priced to reflect driving style with safe drivers receiving lower premiums and price rises being imposed if they don’t drive safely.
Eighty-four percent of drivers would be interested in telematics if the black box was fitted free and motor premiums reduced for careful driving.
Why should you use a broker to make your insurance arrangements? After all you can do most things yourself on-line these days …
15 Sep 2020
The High Court has today handed down its judgment in the Financial Conduct Authority’s (FCA)’s business interruption insurance test case. For a …
15 Sep 2020
How employers may be affected by the changes Brexit will bring – and what actions should they consider.
The UK left the EU …
10 Sep 2020