Drivers in search of cheaper car insurance are expected to leave their current providers in droves, with industry experts predicting that more than 50 per cent of UK motorists to switch to car insurance companies that offer telematics-based cover by 2017.
Recently conducted research conducted by a major car insurance comparison site found that a large number of drivers from all walks of life are interested in the kinds of savings that can be made by switching to telematics, or ‘black box’ insurance technology. The cover involves fitting a device to a motorist’s car in order to extract pertinent information, such as distances traveled, rate of speed, how safely or aggressively the driver brakes and takes corners, and whether they spend most of their time behind the wheel during the day or after nightfall.
The telematics device, after gathering this data, transmits the information wirelessly to the insurance company in order for the insurer to get a more perfect view of the driving habits of each individual driver. As a result, motorists that drive with care and caution are rewarded with reduced insurance premiums to reflect their overall risk.
The survey found wide-ranging support for such a system, as more than 9 out of 10 respondents stating that their premium prices should be set based upon their motoring habits instead of largely irrelevant matters such as their postcode.
With motoring costs rising so quickly, industry experts say that the coming generation of telematics-based car cover will come to play an increasingly important role in the insurance marketplace over the next few years, if not months.