Aviva, the largest insurer operating within the UK, has begun to explore telematics-based insurance technology through the smartphone app, which is designed to link to a ‘black box’ fitted to the dashboard of users in order to keep track of motoring behaviour and offer real-time feedback to customers interested in reducing their car insurance rates. While Aviva is not the first insurer to explore the possibility of telematics insurance, the insurance giant’s possible provision of the new tech could pave the way for widespread adoption, experts say.
Telematics is touted as one of the best ways to control rising motoring costs, especially for classes of motorists that are seen as carrying high inherent risk such as younger drivers. Experts say that new and inexperienced drivers may be able to push back against spiraling insurance costs through car insurance companies that provide telematics technology, given that these young drivers can prove themselves worthy of reduced rates through safe driving.
Recently conducted research indicates that as many as two out of every three young motorists could realise insurance premium price reductions of as much as 22 per cent after driving a car fitted with a telematics device for a full 12 months. However, Aviva’s approach may be problematic, experts say, as by tying the telematics device to a smartphone app would necessitate motorists having their phone with them every time they get behind the wheel.