22 August 2019 11:30
Some 35 % of drivers aged 17 to 25 years the United Kingdom had a car insurance including a telematics solution in 2018. However, they pay the same premium for their car insurance than the average, says the company GlobalData, specializing in data and analytics.
Telematics is a way to monitor the driving habits of the insured. A black box can be installed under the vehicle in order to monitor aspects of driving such as speed and the habits of braking. Insurers often provide discounts on the auto insurance premiums for good driving habits.
“These policies are made to help the young drivers to prove they drive safely in order to reduce their annual expenditures. However, young people of 17 to 25 years of age pay a lot more expensive. The situation is even worse for young people under the age of 21 years, who pay nearly double the average of the premiums, ” says Liam Hopson, analyst in insurance for GlobalData.
Premiums are too high
The firm argues that the high cost associated with the purchase of a vehicle in the Uk are such that a large part of the population prefers to achieve a certain financial stability before passing a driving test.
“This affects their independence, their social mobility and reduces their chances of finding a job, because they must ask their family and their friends lead to their place or have to take public transportation,” says GlobalData.
After Ben Carey-Evans, senior analyst in insurance for the company, ensuring the young drivers is becoming a problem for the insurance companies. The high premiums are pushing young people towards other alternatives, but the insurers may not reduce due to the high risk, he said.
He added that telematics could be replaced by fonts tarifiant the motorists according to the distance travelled. “This would ensure that drivers could simply limit their driving and to pay for what they need,” says Mr. Carey Evans.