Young drivers win big as telematics slashes car insurance costs
Written by: Abaranji Sivakumar, Last updated:14th February 2022
Telematics has slashed the cost of car insurance for UK motorists by close to a tenth, according to new research.
A study, published by Consumer Intelligence, found that car insurance price cuts are speeding up, with drivers seeing premiums drop by 9.1 per cent on average over the past 12 months.
This means motorists with black box telematics policies are paying an average of £766 for a year’s motor insurance.
Young drivers are the biggest winners when it comes to telematics-backed insurance, with under-25s enjoying annual premium quotes of £1,608 after prices fell by 15.4 per cent in the past year.
Meanwhile, the over-50s saw prices drop 6.8 per cent over the same period to an average of £392.
John Blevins, a pricing expert at Consumer Intelligence, said that telematics had helped quoted premiums drop but another influencing aspect was the fact that insurers have been pre-emptively passing on the anticipated benefits of whiplash reforms to gain a competitive edge.
“The influence of telematics is a major factor with increased use of it by the over-50s and a three per cent rise since March,” he commented.
“Generally, over-50s experience the biggest price rises as a percentage and the smallest price cuts so older drivers should explore telematics if they want to beat the demographic trend.”
Jez Strong, general manager for Tele-Gence, commented: “It’s widely acknowledged that black boxes and telematics-based insurance can help bring down the cost of car insurance – and it’s great to see solid proof of that in these figures.”
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