’Now is the time for insurers to offer customers the opportunity to reduce premiums,’ says managing director

One in five drivers have never been offered a telematics policy to reduce premiums, new figures released yesterday (9 October 2023) revealed.

Telematics insurance allows a motorist’s driving to be monitored either through an app or device fitted to their car.

According to connected car data supplier Trakm8, the majority of drivers (57%) would choose a telematics policy if it reduced their renewal quote compared to a standard policy.

However, some 20% of motorists admitted the only reason they have not considered a telematics policy was because they have never been offered one when buying or renewing their insurance.

“The results of our new driver survey highlight that a huge amount of UK drivers have never been offered telematics policies as an option when they renew,” Adam Gooch, managing director for insurance at Trakm8, said.

“These policies allow drivers to benefit from much more accurate premiums and reward them for positive driving behaviour.”

’Now’s the time’

This came after Pearson Ham revealed that motor insurance prices rose at an “unprecedented” rate in the last year after surging during the third quarter of 2023.

Last week (6 October 2023), the pricing specialist said that motor insurance prices rose by 16% in Q3 2023, resulting in premiums now being almost 46% higher than last year.

Tramk8 said it was working with a number of insurers and brokers in the UK to help them further understand customer driving habits and vehicle health so, in turn, they can manage policies and risk profiles on an individual basis.

“According to Pearson Ham, consumers are seeing motor insurance prices increasing on average by 46%, so now is the time for insurers to offer customers the opportunity to reduce these premiums in exchange for driving behaviour data,” Gooch said.