Young driver insurer Young Marmalade claims it has reduced premiums by 17% by using telematics, the Financial Times reports.
In its Intelligent Marmalade insurance scheme, the insurer uses telematics satellite technology to monitor the policyholder’s driving behaviour. Good driving is rewarded with lower premiums, while poor driving can result in a price hike or even policy cancellation.
“We are delighted to be able to be cutting our premiums at a time when the rest of the insurance industry are increasing theirs,” said Nigel Lacy, co-founder of Young Marmalade. “It’s part of our on-going commitment to get more young people driving - and driving safely. Intelligent Marmalade has had a very positive impact on safety - analysis has shown that drivers are far more vigilant and careful.”
Motor premiums for young and other drivers have risen sharply over the past two years as motor insurers combat rising bodily injury claims by hiking premiums.
However, the AA found that premiums for 17-22 year-olds dropped 5.6% in the second quarter of 2011.
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