Telematics reduces car crashes by 20% in young drivers

Satnav-based telematics motor car insurance technology has reduced car crashes involving young drivers by 20 per cent, according to one of the largest car insurance companies in the UK.

Cheap car insurance provider The Co-operative, which had recently adopted the telematics insurance technology, recently reported on the motoring habits of 10,000 young drivers between 17 and 25 years of age, remarking that accident rates went down by 20 per cent when compared with traditionally insured motorists of the same age.  Those policyholders who opt for telematics technology to be included in their cover of all ages claim around 30 per cent less often than regular policyholders, the research found, and those who do claim have accidents that are much less serious and expensive as well.

Cars fitted with telematics cover have a little box, similar to a satnav, installed that keeps tabs on the motoring behaviour of the policyholder whilst behind the wheel by keeping track of what time of day the car is driven and how aggressively or responsibly the car takes corners, brakes, and accelerates.  The information is then taken into account during premium calculations, with the results being that premiums are decreased for motorists who drive safely.

Telematics is a growing trend in the UK, one that started in 2006 when Aviva launched a pilot scheme with 5,00 drivers.  While the technology was too expensive six years ago for wide adoption, prices have come down in recent years, and now telematics-based technology has become quite common in cars on the road in 2012.

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