The recent motor car insurance summit, which took place this week at Downing Street, saw industry experts and ministers discuss methods on car insurance companies could provide cheaper rates for drivers, especially younger motorists.
Young and inexperienced drivers have had to shoulder the largest burden when it comes to increased car insurance rates over the past few years. As a result, discount car insurance for young drivers is incredibly difficult to find, though new advances in telematics-based ‘black box’ technology may bring some relief to harried younger Brits who could otherwise see themselves priced right off the road.
Telematics insurance has also been touted as the solution for another issue that has reared its ugly head – a recent ruling by the European Court of Justice that has banned the use of gender in risk assessments for insurance. Female drivers were the beneficiaries of current risk assessment practices, as women were seen to be less likely to get into accidents, and thus provided cheaper rates, but from December 20 of this year, women will see their premiums come up in price to match their male counterparts.
However, since black box technology is truly gender-neutral, as it will reward safe driving without taking your gender into account, many industry experts feel that this could revolutionise the industry. Safe and responsible motorists will be rewarded by insurers for demonstrating their lower risk through a reduction in their premiums.
Demand for telematics-based insurance has blossomed as a result of this, with some insurers reporting in excess of 12,000 drivers between the ages of 17 and 25 have already signed up for their own black boxes.