An overwhelming number of young individuals who are drivers are holders of telematics insurance for cars. According to the latest report from the collected data of young people aged between 17 to 19 years old by the industry, a value of 51% of the total population of these individuals are using the commonly known black box insurance. Considering the data of many quotes that were taken from the site of MoneySuperMarket car insurance, it reveals that almost half of the car insurance policies that were taken by those individuals ranging from age 17 to 19 years were all from telematics car insurance industry.
These data represent insurance holders only for January, February and March of the year 2018. The telematics car insurance industry avails insurance cover at a cheaper price provided that the subscriber will install and be able to use a global positioning system (GPS) in the car. More so a smart phone application can be used as an alternative. This enables the industry to keep track of their behaviour while on the road.
According to a study conducted by HonestJohn.co.uk, a bigger percentage of the young people are not taking the insurance cover willingly but they are being forced to get them. This is as a result of the standard insurance policies becoming more and more expensive for most youths to acquire, added to the cost of car leasing for young drivers.
A specific market survey carried out for an individual aged 18 years going for a comprehensive insurance cover for a ford fiesta model reveals a black box cover policy for a typical driver being £ 1550. On the other hand, £ 1938 is the value for a standard insurance package that is not linked to telematics.
Moreover, results show that there is a possibility of a young driver incurring a bill that of up to £ 3000 in just a year for a standard 12-month insurance policy cover. Black box insurance cuts the bill to around £ 2143 in the same period and therefore proving to be cheaper. Another research reveals that about 45% of young drivers were annoyed by the fact that they have to depend on telematics insurance to cut down insurance costs. Although a large number of young drivers would prefer to being provided by a scheme that cuts costs, many of them are against the black box insurance.
Basing on the research that was conducted by price comparison site Quote Goat, survey results done on a total number of 1000 youths of between ages 17 and 24 gives a clear indication of how the youths hate the idea of relying on black box telematics despite the fact that it reduces costs. About 45% of them said no to black box insurance because most of them restricts the cars mileage including night burns.
Approximately a quarter of individuals aged 20-24 have black box insurance covers with the number reducing to one out of ten to those aged between 27 to 29 years. This is a finding by the MoneySuperMarket.
Contrary to the expectations prior the reduction of the premiums to be paid by individuals aged 17 to 19, more money is paid by the young drivers as compared to older people due to a many claims arising from personal injury caused by the young drivers. These were Kevin Pratts comments.