General Insurance Article - Black box uptake rising in under 30s despite concerns

 Benjamin Hatton, Insurance Analyst at GlobalData, comments: “Given younger consumers’ considerable online presence, it is perhaps surprising that they find the idea of data sharing and privacy to be such sticking points when it comes to telematics. Advertising the potential financial savings black boxes and usage-based products can provide may go some way to addressing these concerns. However, there also needs to be a reassurance that these services are intended to help young drivers, rather than acting as a Big Brother that’s constantly watching for errors.

 “Telematics can unlock discounts for good drivers, which could help young drivers who are subject to considerably greater average premiums for their car insurance. This will become especially important as the cost-of-living crisis continues.”

 As the UK emerges from the COVID-19 pandemic, many consumers have considered how their driving habits and frequencies have changed.

 Hatton continues: “GlobalData’s survey indicates that 28.3% of under 30s believe they will be driving fewer miles annually than before the pandemic. Usage-based policies are a great way for low-milage drivers to keep their premiums low, with a growing number of young consumers looking to make use of these policies.”

 GlobalData forecasts a growing use of mobile devices, in lieu of black boxes, as providers increasingly enhance their digital capabilities.

 Hatton adds: “The rollout of 5G networks across the UK will further facilitate mobile telematics. Moving to mobile will also remove installation costs, meaning the services are both more accessible and more affordable.”