Data from insurethebox demonstrates that behaviour based policies reduce premiums for young drivers
UK leading pioneer of telematics-based insurance, insurethebox, hits a 5 billion miles of driving data milestone and has released analysis demonstrating the positive impact of behaviour-based insurance premiums. The latest data shows that over half of young drivers saved an average 38% after their first year of driving[i].
Holding one of the largest driving data sets in the UK, insurethebox has a unique understanding of the risks associated with driving behaviour. This insight helps the insurance provider communicate with policyholders to help them understand good driving behaviours, not only to keep them and their passengers safe, but also to give them valuable savings.
insurethebox policyholders have access to a personalised online portal which displays information about their driving and how they could improve in order to be a safer driver with the best chance of seeing their premiums reduce. A number of parameters are used to determine how safe a driver is – analysing if they brake or accelerate sharply; if breaks are taken on long journeys; as well as their speed on different types of road. And good driving behaviour is rewarded with Bonus Miles, with up to 100 Bonus Miles rewarded per month.
The latest analysis shows that over 55% of insurethebox customers renewing after their first year earned on average more than 60 bonus miles per month[ii].
“Consumer Intelligence[iii] recently reported that average insurance premiums for under 25’s is around £1,673 – still considerably more than any other age group” explained Gary Stewart, Service Manager at insurethebox. “Telematics innovation, therefore, plays a vital role in reducing premiums for young drivers.
“We make clear to customers, in direct communication and through their own personalised portal, the driving behaviours that will put them and other road users at risk and which, therefore, could have a detrimental effect on their premium at renewal. By giving young drivers this insight into their driving behaviours, we help them develop good motoring habits – as well as having a potential benefit on their wallet.”
insurethebox policies offer an initial 6,000, 8,000 or 10,000 miles of cover. Through a telematics box installed in the vehicle, insurethebox uses individual driver data to determine the risk profile of each policyholder and calculate their premiums. insurethebox shares driving data with each customer through a personalised online portal empowering them to better manage their driving habits, in order to reduce their insurance risk profile – and possibly their renewal premiums.
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Notes to Editors
insurethebox
Insure The Box Limited launched in June 2010 with its first product, insurethebox, and now holds over 5 billion miles of driving data and associated claims. As well as insurethebox and drive like a girl (another Insure The Box brand) it also administers other telematics offerings. Insurethebox is owned by Aioi Nissay Dowa Europe Limited, part of the major Japanese insurance group MS&AD Holdings, Inc. The group is taking a leading role in the development of technologies that will change the face of motor insurance and the way we view the car.
[i]-[i][i] Customers with a policy start date between Q1 2017 and Q3 2018: premium discount average 38%. More than 55% of these customers earned 60+ monthly Bonus Miles.
[iii] https://www.consumerintelligence.com/articles/car-insurance-premiums-begin-to-ramp-up