General Insurance Article - A case of JAM today but not tomorrow


Charlotte Halkett, General Manager of Communications from leading telematics insurance provider, Insure The Box, comments on the Autumn Budget Statement: “Whilst today’s Budget Statement suggested a real commitment from the Government to invest in the future of science and technology to improve people’s lives, there is a glaring cost increase for some of the most financially vulnerable in our workforce.

 There was much talk of helping the ‘JAMs’ but yet another increase in IPT – this time rising by 2% up to 12% - seems counter-intuitive to this goal. IPT hits all motorists hard, many of whom will need their car to get to and from work.

 In less than two years, IPT will have doubled from 6% to 12%, and it is some of the most financially vulnerable that are hit the hardest. IPT disproportionately affects younger drivers, who have higher premiums than average. These continuous hikes therefore add to an already frustrating outlook for young motorists, many of whom are at risk of finding themselves priced out of driving altogether. Even worse - they could consider taking the risk of driving whilst uninsured.

 The latest increase means that a typical young driver paying £1250 for their insurance pre-tax will have seen their IPT bill rise from in £75 in October 2015, when the rate was 6%, to £150 in June 2017, when the rate will be 12%. There is no exemption being offered for the youngest drivers and we believe this puts even more emphasis on the value of technology-driven solutions, such as telematics.

 “The Government has put a very clear focus on getting young people into work and yet, is failing to recognise that for many, being able to drive to and from their place of work is a fundamental part of the process.

 “At Insure The Box we want to empower social mobility amongst younger drivers by giving them a way to better control their own insurance costs. We do this through the use of black-box technology whilst simultaneously reducing road accidents involving our drivers.”

 Insure The Box policies offer an initial 6,000, 8,000 or 10,000 miles of cover. A telematics box installed in the vehicle then monitors the policyholder’s driving and safer drivers can receive up to 100 free Bonus Miles per month. Each policyholder has their own portal where they can check their progress, how many Bonus miles they have earned and how they could have earned more. Renewal premiums consider actual driving style, with safer driving earning the best prices, and an Accident Alert service comes as standard with every policy.
  

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