Telematics Insurance Policies Grow 9% in UK

May 26, 2015

There are currently about 323,000 live policies involving the use of telematics in the UK market, compared to 296,000 in December 2013. 

The British Insurance Broker’s Association (BIBA) said policies with the use of the “black box” could save careful drivers up to 25 percent of premiums and young drivers could save up to £1,000 ($1,539.60), reports The Actuary.

The telematics technology monitors different factors including speed, cornering, acceleration, braking and familiarity of route, which were all used to provide a risk profile.

With the increase in sales, BIBA is urging the new government to consider insurance premium tax (IPT) relief for telematics policies for young drivers in an effort to reduce accidents and make driving more affordable.