The number of live telematics-based policies reached almost one million – standing at 975,000 in 2017, according to the British Insurance Brokers’ Association (BIBA). The BIBA survey includes information from the leading telematics brands in the UK to determine the number of live policies which, shows an increase of nearly 30 percent on the 2016 figure.
Evidence from BIBA member Marmalade, specialists in telematics insurance for young drivers, highlights the impact this type of policy is having on road safety. Marmalade’s telematics customers are three times safer than the UK average with only one in 15 having an accident within the first six months of passing their test, compared to the UK figure of one in five, BIBA said, quoting statistics from Marmalade’s New Driver Insurance policies, incepted April 2016 to March 2017.
Previous research by the insurer Ageas and the UK Road Safety Foundation showed that increased uptake of these policies would result in a net cost benefit to Treasury of £212 million (US$300 million) over seven years due to the reduction in deaths or serious injury accidents, he said. “That is why we are calling for a zero rate of Insurance Premium Tax on telematics-based policies bought by the under 25s.”