Black box discount car insurance expected to take over industry

Cheap car insurance quotes through the use of telematics-based black box technology is predicted to supplant more traditional motor car insurance by 2017, industry experts say.

Nearly 60 per cent of motorists in the UK feel that they will switch car insurance companies to one that offers telematics insurance within the next five years, according to research recently conducted by a car insurance comparison company.  An overwhelming number of motorists believe that premium prices should be reflective of not gender or age but how safely they drive at a margin of 92 per cent, while an even more resounding 97 per cent said that those drivers that can demonstrate safe driving should be rewarded with less expensive insurance..

Telematics technology could be the answer to many drivers’ prayers when it comes to managing motoring costs through a hands-on approach, since the black box tech allows motorists to control their premiums directly through responsible driving.  A side effect of wide adoption of the technology will be roads that are vastly safer than they are today, with even 60 per cent of drivers taking care to avoid prangs and more serious collisions reducing incidences of expensive accidents even further, thus incurring less cost to insurers.

The car insurance head of the comparison site, Scott Kelly, remarked on the results of the research survey, stating that, with the costs of motoring constantly on the rise, telematics-based insurance products will continue to evolve within the marketplace over the next few months and years, and are expected to capture a wider market share as early adopters continue to benefit from lower premium prices than those still tied to traditional risk assessment models.

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