THE FUTURE OF YOUNG DRIVERS INSURANCE?
TELEMATICS – HOW DOES IT WORK?
A small unit is installed in your vehicle which continuously measures speed, geo position, braking force, rate of acceleration and severity of cornering. Data is transmitted by a sim card to a central computer where it is processed and assessment is made as whether the driving behaviour is high, medium or low risk. All performance can be viewed on a web browser or smartphone.
GETTING INSURANCE BASED ON HOW YOU DRIVE
The availability of telematics or black box insurance policies have grown rapidly in recent years, particularly because insurers can no longer set their rates based on their customer’s gender.
This is where drivers, particularly young drivers, are offered an upfront discount or cashback on their car insurance in return for letting the insurance company install a device in your vehicle and monitor how you drive.
This is an excellent way for new drivers to prove they are a safe driver and should be rated on how they drive, not on how the rest of their age group have driven in the past. The simple fact is that safer drivers will be rewarded for better driving and that can only be a good thing.
If you consistently drive badly or dangerously there are consequences. Every insurer will respond differently to high-risk driving behaviour. In some cases high-risk drivers will simply not be entitled to premium reductions or other non-monetary benefits.
OTHER WAYS TO CUT INSURANCE COSTS
Insurance premiums for new drivers are certainly a barrier for getting on the road, but there are steps you can take to cut your costs:
- Speak to your broker before you purchase a vehicle to see what the premium will be as aiming for a lower group and a lower value vehicle is a good idea if you are a new driver.
- If it is a low value car consider a third party, fire and theft policy instead of fully comprehensive, but only if this is suitable for your needs.
- Look at whether you can afford an increased excess, but make sure you can afford to pay the excess and be aware that many young driver policies may already start at £250.
- If possible, park you car in a secure location overnight such as a garage or off road on your driveway.
- Discuss your vehicle usage with your broker – you may receive a lower premium if you have limited mileage (under 10,000 miles per year) or do not use it to commute.
- Avoid modifications on your car.
- Consider a dashcam (camera) – these can prevent fraud and some broker can provide discounts so it pays for itself after a little while.
- Consider some post test training courses, not only will they help make you a safer driver but some they can also help you qualify for insurance discounts
Article supplied by BIBA