Insurers underwriting Fair Pay, which has teamed with satnav provider TomTom
Markerstudy and Equity Red Star aim to push the boundaries of telematics by going beyond the traditional younger driver market and capturing experienced motorists.
The insurers have teamed up to underwrite for Motaquote-owned telematics firm Fair Pay Insurance.
Fair Pay, launched this month, has signed up satnav provider TomTom to target up to £10m of premium from experienced drivers in its first year.
Telematics insurance has traditionally targeted younger drivers who are keen to bring down high premiums by having their driving skills monitored.
More experienced drivers are considered less likely to want telematics because their premiums are lower and they may not welcome the intrusiveness of having data about them captured.
But Fair Pay managing director Nigel Lombard says experienced drivers - those with at least two years on a full licence - will be attracted by even lower premiums. They will get the benefit of a satellite navigation system in their car and Formula 1-style telematics information at their fingertips.
Lombard said Fair Pay would rely on the experience of sister company Ikube, a telematics firm for young drivers set up in 2006.
Fair Pay’s comprehensive question set will also help it capture some of the best risks in the market.
Lombard said: “We think we’re now the longest running telematics proposition in the UK that’s continuous. We know what we’re doing.”
A Fair Pay policyholder would buy a TomTom satnav unit that would connect to the car’s telematics box by Bluetooth. As well as working as a navigation device in the normal way, the satnav unit would also display data about the policyholder’s driving.
Pass notes: Telematics
What are the alternatives to ‘black boxes’?
Telematics firm Witness relies on smartphone technology to replace the black box installed by other companies. Witness is in talks with insurers to get backing for the project, which involves using an iPhone app to film driving.
What is the future for telematics?
With more insurers and brokers unveiling telematics projects, the technology looks set to dominate the young driver market. Some car makers plan to factory-fit the boxes. Finally, PM David Cameron has focused on telematics as part of plans to defeat whiplash, giving the sector wider publicity.