Octo Telematics has joined calls for the British government to improve road safety and offer Insurance Premium Tax relief (IPT) on telematics insurance products for drivers under 25.
Various road safety charities in Britain have indicated their support for incentives and rewards that increase telematics adoption, which comes in the wake of a proposal made by the British Insurance Brokers’ Association (BIBA) in response to soaring insurance premiums in that country. The association included the call for IPT relief on telematics products in its 2015 manifesto.
BIBA’s Insurance Price Index showed that motor vehicle premiums in the second quarter of 2016 reached their highest level since it started tracking prices in 2010. Premiums for private car insurance were up by more than 11% compared to the same period in 2015. It also shows that young motorists were the hardest hit.
Research shows that drivers aged between 17 and 24 are at a much higher risk of crashing than older drivers. Drivers aged 17-19 only make up 1.5% of UK licence holders, but are involved in 9% of fatal and serious crashes where they are the driver. Drivers aged 16-19 are a third more likely to die in a crash than drivers aged 40-49 and one in four 18-24-year-olds (23%) crash within two years of passing their driving test.
Telematics insurance products collect contextual vehicle and driver data to correctly assess risk and accurately price premiums. They provide actionable intelligence to motorists to help them improve their driving, become safer road users and take more control of the insurance premium they pay. BIBA member research shows that there is a 40% drop in crash risk for new drivers that use a telematics device.
Telematics can benefit motorists and the advent of the connected car means that the technology is evolving beyond aftermarket devices into in-car connectivity and smartphones apps. Penetration of global integrated telematics is expected to reach 88% for new cars by 2025, making the technology central to the future safety of all drivers. Telematics has already become key to reducing the number of accidents involving people who are driving as part of their job, according to research by RAC Business.
More than half (52%) of the 500 UK businesses surveyed said telematics has reduced the number of collisions for their fleets, while 58% reported a reduction in speeding incidents and fines.