The risk assessment techniques employed by car insurance companies are poised to evolve with methods that will rely less on basic profiling forms and more on actual motoring behaviour, discount car insurance experts recently reported.
Car insurance rates are currently on the rise. Moreover, with the new ruling from the European Court of Justice leading to as much as a 25 per cent increase to the premium prices for young female drivers, many have begun to question the accuracy of the current methodology used to generate insurance price quotes.
While car insurance comparison sites have become quite popular in the UK, with opera singers and meerkats on every channel when you turn on your television driving untold thousands of drivers to these websites, some provided quotes can appear quite costly. This has led consumers to question if the ease of use of these websites is worth having to put up with seemingly inaccurate risk assessments.
Many feel that determining risk based on job role and address is too generalised, as not everyone with the same job drives in a similar manner. Some jobs are rated as more worthy of cheaper quotes than others, with airline pilots being considered the safest drivers – simply based upon their career.
Such risk assessments are considered arbitrary by a high number of consumers. However, new technology has begun to emerge that can actually provide real-time information to insurers regarding a motorist’s driving habits, giving these insurance providers a true image of how safely they actually are once behind the wheel.
Referred to as ‘telematics’ technology, it consists of a small black box fitted under the dashboard of a car which records information such as rate of speed, acceleration, and how sharply motorists apply their brakes or take turns. Those who drive safely are rewarded with cheaper policy premiums, while those who demonstrate recklessness are subject to rate hikes.