Young drivers could save £1k on insurance switching to telematics
For drivers aged 21-24, the average telematics premium is £388 cheaper.
But the research from comparison site comparethemarket revealed that the proportion of quotes where telematics premiums are cheaper does decline as drivers move up the age brackets.
However, it said telematics premiums are still cheaper for 40% of drivers aged between 25 and 29, helping them save an average £264.
Despite the savings available, a separate study revealed more than half (59%) of drivers under the age of 21 are unlikely to choose a telematics policy, rising to 70% of drivers aged 21-24.
The main concern centred around privacy with four in ten drivers aged 17-20 stating they are not comfortable sharing their driving data with insurers. This rises to 55% of drivers aged 21-24.
For 58% of motorists aged under 21, they don’t believe telematics policies make driving more affordable.
Discount for sensible driving
Alex Hasty, director at comparethemarket.com said: “As the cost of driving increases with higher fuel and insurance costs, young drivers may wish to consider swapping to a telematics policy, with potential savings for 17-20-year-olds drivers reaching £1,137 on average. 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.”