Many specialist providers of discount car insurance for women have had serious concerns for the motor car insurance industry as of December of this year, as a new EU ruling prohibits the use of gender in calculating premiums – but many have said that telematics-based insurance could save the industry.
According to Labour research analysis, female motorists could see their car insurance rates increasing by as much as £362 in increased premium pricing once the new gender discrimination ban goes into effect, putting an end to cheaper car insurance for women – even though they are statistically less likely than men to be involved in accidents. However, telematics-based insurance could avert disaster for the nation’s female drivers, as risk assessment is not conducted by statistical analysis but on an individual basis by gathering driving data from every motorist that opts for telematics cover.
Industry experts have expressed little to no doubt that making telematics-based motoring data standardised will result in making it much easier for consumers to compare insurance products from one provider to another in order to shop around for the best deals. There are nearly 200,000 motorists in the UK that are currently driving under a telematics-based insurance policy, and some say that this figure may increase to as high as five million motorists by 2014.
The technology, which has been present for many years in the UK, has finally reached a ‘tipping point,’ one expert said, as countless drivers begin to migrate to cheaper providers in preparation for the new EU rules at the end of this year.