Telematics is driving force for young drivers
Marmalade, the leading provider of insurance and cars for young drivers, has seen a massive increase of 212% in the number of customers taking out telematics policies from 2014 - 2016.
Premiums for young drivers are under particular scrutiny at the moment following Government plans to change the way personal injury compensation pay-outs are calculated as well the planned Insurance Premium Tax increases, hitting the younger market hardest.
There are large savings on the cost of insurance for this notoriously ‘high risk’ age group when using the black box which is a big plus for many. Marmalade’s exceptionally strong safety results also go some way to explaining these lower premiums as studies show that 1 in 5 young drivers in the UK have an accident within the first 6 months of passing their test – with Marmalade that figure significantly improves to only 1 in 16, making its young drivers three times safer*.
Graeme Trudgill, Executive Director at The British Insurance Brokers’ Association, said: “It is encouraging to see such a big take up of telematics policies, which has been helped by companies such as Marmalade. Motor insurance premiums for young drivers are higher than for other drivers because statistically they have more accidents, but the safety advantages of telematics help to reduce users’ premiums.”
Crispin Moger, CEO of Marmalade, says: “We know that telematics makes a big difference to the safety of a young driver, as our statistics support, as well as helping drive down the cost of insurance for our young drivers – we expect to see continued growth in telematics policies.”
Crispin continues: “The increasing number of black box policies being taken out is encouraging. For me, this marks the beginning of an exciting time for our industry and an opportunity to give young drivers a better deal on their insurance, as well as ensure they are safer on our roads.”
* Based on Marmalade New Driver policies incepted Apr 2015 - Mar 2016. 1 in 16 Marmalade drivers have an accident within 6 months of their policy start date, compared with 1 in 5 young drivers who have an accident in the first 6 months after passing their test, according to National Statistics.