Biba uses results to renew calls for an IPT exemption for young drivers taking out a telematics policy
The number of live black boxes fitted for telematics policies has increased by 9% over the last year, according to the latest research from Biba.
A survey run by the association found that there were 323,000 live policies at the end of 2014, compared to just 296,000 at the end of the previous year.
Biba Executive director Graeme Trudgill said: “Biba’s new research shows that this innovative area of motor insurance continues to grow and this is demonstrated by the fact that more and more brokers have launched products to meet this demand.”
The research also found that one in eight new drivers with a telematics box crash in their first six months on the road compared to one in five nationallywithout a black box.
Biba has used the findings of the survey to refresh its call for an insurance premium tax (IPT) exemption for young drivers taking out a telematics policy.
Ageas UK chief executive Andy Watson said: “Removing IPT on telematics products would increase take-up and promote safer driving among young people. It would reduce the number of serious road crashes – which cost the economy an average £400k each according to the Department for Transport.”
Chris McKee, chief executive of Biba member Ingenie, said: “Our data shows a 40% reduction in crash risk for new young drivers with a telematics policy, compared to the national average. Removing IPT would help spread this benefit to more young drivers by encouraging greater take-up.”