More young drivers want telematics policy for environmental benefits

More than a third of young drivers would be convinced into buying a telematics policy if there were environmental benefits.

That was according to The Green Insurer, which said that the appetite for telematics was growing after finding that 81% of motorists were now aware of such policies.

Its research, which was published yesterday (8 February 2024), also found that 35% of drivers were “quite likely” or “very likely” to consider telematics cover in the future – some 61% aged 18-24 also felt this way.

This was partly driven by motorists thinking greener, with a fifth (20%) needing proof that a telematics insurance policy would be better for the environment to consider such a policy.

And almost twice as many (39%) younger drivers also said their main motivation for buying the product would be the environmental benefits.

This came after data published by Consumer Intelligence in October 2022 showed that 77% of Brits noted that they wanted their insurer to be more environmentally friendly, with 23% being prepared to pay something extra for a car insurance policy that was tangibly environmentally friendly.

Paul Baxter, chief executive of The Green Insurer, said: “It’s interesting to see the direction of travel for telematics insurance as people become more conscious about the impact of driving on the environment.

“Environmentally conscious driving doesn’t just lead to lower premiums, but also lower fuel costs and slower driving speeds.”

Prices

A total of 1,135 adults were surveyed for The Green Insurer’s research, including 888 car owners.

It also found that 59% of all drivers wanted to see “substantially lower premiums” if they were to purchase a telematics policy.

Meanwhile, some 29% of motorists said they would be tempted by telematics cover if it gave reassurance that their driving data would be secure.

“It’s not surprising that younger drivers in particular are drawn to the benefits of telematics insurance,” Baxter said.

“Their relative inexperience means they face the highest premiums, so it’s great to see how many younger drivers are already seeing a link between using telematics insurance and lower policy costs.”