Only 5% of insurers offer telematics policies which typically serve the younger generation
LexisNexis Risk Solutions has urged the government to “seriously examine” data which demonstrates telematics policy take up reduces collisions.
According to research from LexisNexis of 3000 motorists, nearly three quarters (71%) of drivers aged 65 and over would welcome a telematics or black box policy to save money or improve safety.
Moreover drivers over 65 years of age were least concerned about their data being used to calculate premiums and saw a benefit in them proving their innocence in a crash.
Overall 66% have no fear using telematics. This, the company said, signaled a demand for Usage Based Insurance (UBI).
Missing out
However, at present only 5% of insurers offer this type of policy, typically to younger drivers to reduce premiums.
It follows statistics from UK government’ road accident revealing that incidents on the road remain one of the top ten causes of death worldwide.
But black box insurance has led to a 35.32% reduction in collisions for 17-19-year-olds over the past six years, according to LexisNexis.
Government
Graham Gordon, director, global telematics, at LexisNexis, said: “We urge motorists to ask for telematics policies that will not only help them manage their costs but also monitor their driving behaviour.
“At the same time, we encourage the government to start to seriously examine data which may show a correlation between telematics policy take-up and the reduction in road casualties in young drivers and do more to incentivise drivers of all ages to take up black box insurance.”
He explained that the firm’s findings should provide a “catalyst for the insurance sector to go beyond young drivers to offer the benefits of black box insurance products.”
He cited the potential for money savings and improved driving habits, to a wider audience of motorists.
Findings
The study found that stolen vehicle recovery ranked as the top reason for taking up telematics (47%) followed by an upfront premium discount (39%).
It revealed that 42% would buy it for a cheaper premium, with 41% citing fairer pricing as the biggest benefit.
And for 21% potentially becoming safer drivers was the best aspect of telematics.
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