The uptake of telematics insurance among UK drivers is seeing a notable increase, as a significant portion of motorists view it as a strategic avenue to secure discounts on their car insurance premiums, according to a study conducted by The Green Insurer.
The study reveals that awareness of telematics insurance is widespread, with 81% of UK car drivers familiar with the concept. Despite only 8% of those surveyed currently utilising telematics devices, a considerable 35% express openness to considering such policies at their next insurance renewal.
Furthermore, the report noted that this figure escalates among the younger demographic, with 61% of drivers aged 18-24 indicating their likelihood to opt for telematics insurance shortly.
Given the higher insurance costs faced by young drivers due to perceived risk factors linked to inexperience, it is also noteworthy that 26% of the younger respondents already employ telematics devices - significantly above the overall average.
The prospect of reduced premiums is revealed as a major incentive, with 59% of all drivers surveyed stating that significant savings would persuade them to switch to telematics policies. Additionally, 29% express a desire for assurances on the security of their driving data.
Environmental benefits associated with telematics insurance also resonate with motorists, particularly younger ones. One-fifth (20%) of all drivers surveyed require evidence of environmental advantages to consider telematics insurance, whereas this motivator jumps to 39% among drivers aged 18-24.
Feedback from current telematics users underscores the financial benefits, with 85% reporting up to a 20% reduction in annual premiums. Specifically, a majority have experienced savings of between 5% and 15%, which further increases to 80% among the 18-24 age group.
Paul Baxter, CEO of The Green Insurer, highlights the increasing trend towards telematics insurance as drivers become more environmentally conscious.
“It’s not surprising that younger drivers in particular are drawn to the benefits of telematics insurance,” Baxter said. “Their relative inexperience means they face the highest premiums, so it’s great to see how many younger drivers are already seeing a link between using telematics insurance and lower policy costs.”
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