Many younger drivers, especially male motorists, have been priced off the road by massive hikes to car insurance rates over the past 12 months. However, telematics technology, sometimes called ‘black box’ technology, can be used to help manage costs for these drivers by proving that they can drive carefully and are thus deserving of cheaper car insurance.
Many insurance providers have come to use telematics technology over the past two years, with some motorists experiencing rates lowered by as much as 20 per cent in as little as 12 months. However, AA Insurance is poised to throw its hat into the telematics ring, and a raft of other insurers, such as Direct Line, are hot on the AA’s heels with their own telematics technology as well.
Industry experts say that the new tech is just in time to help save younger motorists. According to the latest insurance premium index from the AA, drivers between the ages of 17 and 22 have experienced insurance cost increases by 39 per cent on average since April of 2010, and the latest insurance price index from Towers Watson found male motorists aged 17 to 20 years old pay nearly twice the amount that female drivers do for the same level of cover.
With motoring costs rocketing upward to such eye-watering levels, many younger motorists have found it too expensive to keep their cars on the road. Additionally, many industry experts fear that more and more of these drivers are driving without insurance because they cannot afford to give up their cars.