The Government has said that it wants to see the rise of discount car insurance for young drivers while simultaneously looking to discourage people from getting behind the wheel without cover and driving car insurance rates into the stratosphere.
The best way to accomplish both these goals is to invest heavily in telematics-based ‘smart box’ technology, which allows vehicles to be tracked via satnav and allows for real-time acquisition of motoring behaviour such as acceleration, braking, and cornering. This will keep the cost of motor car insurance down because not only will motorists be rewarded with cheaper rates for driving responsibly, experts say, but will also lead to much more straightforward accident claims, as the telematics boxes will record exactly what happened leading up to an accident, and could reduce the costs faced by car insurance companies as a result.
The Department for Transport recently announced that, in order to facilitate the advent of more affordable motor insurance, it will be working hand in glove with the insurance industry in order to manage insurers’ costs more efficiently. Many of the issues insurance providers face that drives up costs involve fraudulent or spurious whiplash-related personal injury claims, and the practice of accepting referral fees from personal injury solicitors.
The Department will not only support a referral fee ban, it said, but will also call for the personal injury claims protocol for road traffic accidents to be pushed to £25,000, up from its current level of £10,000, which will allow for a larger number of claims to be expedited under the protocol and benefit from fixed legal costs instead of those charged by solicitors.