Telematics insurance sales rise by 25%
by Richard Kilner
Story link: Telematics insurance sales rise by 25%
There has been a 25% rise in telematics-based car insurance, according to price comparison website Tiger.co.uk.
Younger drivers often find it hard to find affordable car insurance, but telematics car insurance is proving popular, with a 25% rise in sales made through Tiger.co.uk in the first four months of 2012.
Telematics involves the use of a black box to record driving behaviour, and enables motorists who drive more safely to be rewarded with lower premiums.
The Co-operative Insurance reported earlier this year that its own telematics insurance cut crashes by 20%, as drivers seek to be safer to save themselves money.
The savings, especially for younger drivers, can be significant, and women drivers can benefit in particular as gender has been axed as a risk category but women drivers tend to be safer.
Therefore, women opting for telematics will not receive a lower premium based on their gender, but will if they drive more safely.