General Insurance Article - Savings of GBP 160m in premiums made by UK telematics users


Octo Telematics has released data showing that drivers across the UK in 2017 saved approximately £160 million in car insurance costs through adoption of usage-based insurance (UBI) policies - an average of around £167 each, or the cost of an MOT and service.

 Telematics insurance policies are growing strongly across the UK, with many insurers able to offer up to 20% discount automatically. Car insurance costs reached £838 on average in Q3 2017 according to Confused.com’s car insurance price index. According to Ptolemus, there were 679,000 live policies in the UK in 2016 and more than 959,000 expected through 2017. 

 The increased adoption of telematics could not be more timely for cost-conscious motorists. Including the record rises in insurance, 2017 saw a number of events which made this year the most expensive year yet for car owners. The last twelve months have seen tax changes increasing expenses for diesel drivers and other fuel price increases throughout November and into the run up to Christmas.

 For London drivers, the daily £10 T-Charge on emissions from some vehicles can mean yet another payment on top of the existing congestion charge. These costs don’t even take into account ongoing maintenance, parking and other costs already associated with owning a vehicle. Canny drivers are looking for ways to save money, and stay on the road.

 Jonathan Hewett, Chief Marketing Officer, Octo Telematics said: “Driving is getting more and more expensive, particularly with large increases in car insurance set to keep going in the New Year. More and more drivers are recognising the importance of querying their bills and saving where they can. UBI can be the first step in keeping driving costs under control. In fact, with the prevalence of smart phones and telematics apps, saving 20% and more on insurance premiums can be just a download away.”
  

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