Telematics Cuts Young Driver Crash Risk By 40%

The use of telematics to encourage better driving reduces accidents involving young drivers by 35% - 40%, according to statistics released by motor insurer Insurethebox.

The conclusion follows analysis of more than 300 million miles of driving data, making it by far the most extensive and reliable research of its kind ever undertaken in the UK.

The research takes into account factors such as the likelihood that people who buy telematics policies are more likely be to more careful drivers in the first place, and the improvement that takes place naturally as young motorists learn from experience.

Insurethebox data show a greatly reduced likelihood of causing an accident between the first month after customers buy their policies and the final month of their first year. Although this improvement applies to all ages, drivers aged 17-21 show the greatest progress, being 75% less likely to be responsible for an accident after they have been insurethebox customers for eleven months.

Insurethebox uses telematics data from a gps-linked box inserted under policyholders’ dashboards to monitor their driving. Details are recorded onto individual portals and, depending on how well they have driven, they can receive up to 100 extra bonus miles a month on top of their initial purchase of 6,000 miles. The data is also used to decide renewal premiums, with generous reductions for the best motorists.

One beneficial impact of this rise in safety standards has been lower premiums on renewal, with nearly two thirds of Insurethebox customers getting reductions averaging more than 20% after a year with the company.

Launched in June 2010, Insurethebox pioneered telematics-based Motor insurance. It has sold 85,000 policies and is winning more than 6,000 new customers each month. Despite the recent spate of new entrants, Insurethebox continues to account for more than 75% of new telematics Motor insurance policies in the UK.

More at Insurethebox