Telematics The Next Step For Cheap Car Insurance

by

MMurray

Telematics the recording of vehicle movements and driving style rouses mixed emotions when discussed. It s amazing that this technology has not been introduced sooner. Insurance company Aviva attempted to introduce this back in 2005 to tackle the issue of insuring young drivers, but it did not catch on and it was dropped in the main. Since then a range of factors have influenced its resurgence principally costs have lowered and the scourge of spurious claims have increased. Surely for insurers, it s a win-win situation. Driving styles and even G-forces are recorded dictating the level of compensation for whiplash injuries. Erratic driving can be pinpointed and underwritten accurately and, with the forthcoming EU gender ban to come into force later this year, premiums can drop with clear data to support it. Women between 17 and 25 are expected to pay an additional 4300 on average between this period when the ban effects them according to industry experts. Therefore, to prove that women are indeed safer drivers, the wish to have black boxes in their vehicles could well be compelling.

Telematics is not new. Commercial vehicles have had this technology of sorts for a while and courier and taxi firms have had accurate tracking capabilities almost always implement these. The burning issues however relate to cost i.e. who pays for it and the Big Brother argument. Whilst there may be underlying interest in where you re going or what time you travel, from an insurance perspective there cannot be many arguments as to the overwhelming positives associated with installing this technology. After all, statistics have shown that just by knowing that driving habits are monitored, this alone affects driving styles. Of interest is seeing if these boxes are portable if someone takes out short term car insurance and uses someone else s vehicle. The owner certainly won t want someone else s driving style tainting their own. It will be interesting to see how the next five years sees any wholesale introduction. The question is where will it stop will everyone be subjected to wearing cameras whilst working as a tradesman for example to survey accurate liability claims? Will this also give cheap plumbers liability insurancet as a result, for example? As technology improves, this will probably be the only way forward.

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