Young Drivers Turn Off Telematics

Mon 11th Apr 2022

Motor insurance will be one of the biggest outlays for a newly qualified drivers, but despite technology being available which can drastically reduce a premium, young motorists refuse to give up their privacy.

Telematics policies, where you install a black box on your vehicle, have been available to all motorists for a number of years now. The technology records key elements of your driving such as speed, braking and other motoring habits to ensure that the car owner is a safe driver.

But with data and privacy issues connected to the technology, many drivers refuse to share their privacy, a decision which loses them more than half the annual cost of a motor insurance premium.

Analysis from Compare The Market found that telematics premiums are the most economical option for four out of five drivers aged under 20, and two thirds of drivers aged 21 to 24. The youngest age bracket could save an average of £1,137 a year.

“As the cost of driving increases with higher fuel and insurance costs, young drivers may wish to consider swapping to a telematics policy,” said Alex Hasty from Compare The Market.

“These policies are usually aimed at young people and students which is why the policies can be cheaper for what is considered a higher risk age group. 

“The idea is to encourage safe driving, which could also help younger drivers get more affordable car insurance. 

“Telematics can also provide the same benefits to other motorists who might be classed as high risk, including elderly drivers or drivers with convictions.

“Telematics policies can offer many benefits, including a discount on your premium for sensible driving, a smoother claims process after an incident, and GPS technology that can be used by emergency services to find your car. 

“However, if you're considered an unsafe driver, you may face higher premiums when you come to renew your insurance and, if your driving is considered dangerous, your insurer may cancel your policy.”