Policies now account for 17% of the cheapest quotes in the whole market
Telematics brands offered young drivers the cheapest quotes more than half the time in June, July and August, according to Consumer Intelligence’s car insurance price index.
It showed that although black box policies have not significantly increased for older drivers, these policies now account for 17% of the cheapest quotes in the whole market.
According to Consumer Intelligence the growth of telematics has been fuelled by brands DriveXpert, part of Direct Line Group, and iGO4’s WiseDriving.
DriveXpert had 9.56% of quotes for under those aged between 17 and 24 in March, but the number shot up to 15.3% in August.
WiseDriving had an even bigger growth from 8.7% in March to 20% in August.
Telematics provider Wunelli provides the scoring and data management for WiseDriving.
Wunelli vice president Selim Cavanagh told Insurance Times: “This latest research underlines the increasing trust insurers have in telematics data to price young drivers effectively.
”By monitoring driving behaviour, you have a much more accurate understanding of risk factors for better risk selection.
“In addition, we know that telematics encourages young motorists to drive more carefully and this will have had an impact on claims ratios, which again impacts pricing.”