The Blackbox Myth

Thu 19th Dec 2019

While telematics technology may be providing cheaper car insurance policies for younger drivers, new research has revealed that the savings are not the same for older drivers.

Though it might be argued that all drivers who agree to have their driving habits monitored by an insurance company should get a cheaper car insurance policy, MoneySuperMarket has found that the only age group to benefit from the technology are those aged 17-24.

By researching 1.2million car insurance enquiries, the comparison website found that drivers aged between 17 and 19 save an average of £855, while those aged between 20 and 24 save on average £383.
Amazingly those advantages don’t get passed on to older drivers, with telematics tech adding an eye-watering 77% on to an insurance premium seeing the average shoot up from £296 to £525.

Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, said: “Although telematics policies can generally benefit younger age groups, our research shows that it can have the opposite effect on older drivers. In some cases, premiums can rise by as much as £200, which is just under half the average cost of a premium in the third quarter of this year.

“If you’re under the age of 24, telematics could be a good option, with potential savings of up to £855. If you’re an older driver however, a telematics policy may not be the most cost-efficient way to take out a car insurance policy, which is why shopping around is so important - doing so can save you up to £250.”

As an indication of the type of driver which benefits from telematics, two car account for 20 per cent of all telematics policies - the Corsa and the Fiesta.