Cost of living crunch sees over-55s seek pay-as-you-drive car cover – Trakm8

Nearly half (47%) of all drivers aged over 55 would like their next insurer to offer a pay-as-you-drive (PAYD) policy, according to telematics provider Trakm8’s latest survey results, published today (12 September 2022).

To compare, only 38% of respondents aged over 45 and 31% of those aged 18 to 34 said they were keen to move to a usage-based insurance solution.

One quarter (25%), furthermore, stated that the inclusivity of a driver app would be key when looking for new cover.

Trakm8 said that the results of its survey reflected a real shift in how drivers are purchasing car insurance policies, as they look for tech-based solutions to reduce the cost of their cover amid a challenging economic climate.

The telematics firm’s survey was conducted in May 2022 and surveyed 1,551 car owners across the UK.

The survey’s findings build on market research organisation Which? highlighting that a significant number of insureds are paying more to renew their home and car insurance policies, despite the FCA implementing a price walking ban in January 2022. 

Expense crunch

Adam Gooch, managing director for insurance at Trakm8, said: “At Trakm8 we are making connected car data services part of insurance solutions and this national driver survey gives us real insights into what factors are important to policyholders in the UK when purchasing or renewing insurance policies.

“The increased demand for PAYD policies is expected to continue as the cost-of-living crisis starts to impact individuals across the UK.

“Our comprehensive end-to-end insurance telematics solutions are designed to give insurers a unique opportunity to help personalise policies based on a customer’s habits and tailor costs accordingly.”