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Daily Insurance Industry News
Friday 19th of January 2018
April 17, 2012

Telematics technology cuts crashes by 20%

by Richard Kilner

Story link: Telematics technology cuts crashes by 20%

The Co-operative Insurance has conducted analysis of 10,000 young driver insurance claims and found that those with telematics (‘smart box’) insurance are 20% less likely to have a crash than those with standard insurance.

The research looks at driving behaviour of 17 to 25 year olds across the country, a year after The Co-operative’s Young Driver scheme was launched.

Young drivers with telematics are also less likely than those without to have a serious crash, meaning that their average claims are 30% less costly.

This means that young drivers are not only driving more safely, but their insurance premiums are less than they would have been without telematics.

Manager of the Young Driver Insurance scheme Amy Kilmartin said that younger motorists could benefit from major savings, which is particularly important as premiums for young drivers can often be large.

The Co-operative is also calling for more women to adopt the smart box technology, as a recent ruling means insurers can no longer charge differing premiums according to gender.

However, women are safer drivers, so if more take on telematics their safer driving behaviour could see them pay lower premiums.

 

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