General Insurance Article - Survey reveals why motorists choose telematics insurance

Redtail Telematics announced the findings of research undertaken in partnership with YouGov, whereby 1,500 UK drivers were surveyed regarding their attitudes to using telematics-based insurance policies.

 Obtaining cheaper car insurance and having improved awareness of their driving style were considered two of the incentives for choosing telematics-based insurance policies by those surveyed. However, the insurance sector still has work to do in terms of convincing UK drivers of the benefits delivered by telematics as nearly 30% of those surveyed stated that they could think of no reasons to change from traditional motor insurance policies.
 A recent survey by BIBA (British Insurance Brokers’ Association) has revealed that there are nearly one million telematics policies live in the UK - an increase of nearly 30 percent on the 2016 figure.
 The top 5 reasons that UK drivers would choose telematics-based motor insurance policies according to Redtail Telematics/YouGov research:
 It potentially reduces the cost of car insurance for the driver – 47%
 It would help with theft tracking if the car is stolen – 36%
 It would help with claim management after a car accident – 31%
 It provides a financial incentive to drive safely – 29%
 It could help increase self-awareness of their own driving style – 27%
 Commenting on the Redtail Telematics/YouGov research, Redtail Telematics CEO, Dr Colin Smithers said: “Developments in the car insurance market have the potential to revolutionise the way we drive and how we guard against the risks of poor driver behaviour, but as the research highlights, there is still a process of education that needs to take place to convince the 30% of those surveyed who see no incentive to switch to using telematics”.
 Dr Smithers concludes: “The increased use of telematics has important implications for anyone who might consider taking up a a telematics-based insurance policy, policymakers and for society as a whole. Widespread use of telematics is also likely to lead to better driving and fewer fatalities. BRAKE, the UK road safety charity estimates that there were 1,793 deaths due to road traffic accidents in 2018; How many lives would be saved if drivers knew they could save large amounts of money by paying more attention to their driving habits? As a parent who has used such policies, the reality is it’s the effects on one’s children driving that are so much more important than the discount.”

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