Telematics insurer with 5 Billion miles of driving data demonstrates the financial benefit of driving safely
Telematics insurance pioneer, insurethebox is proof that driving safely can help drivers bring down the price of their premium when choosing black box insurance. Not only life-saving, driving within speed limits and with care can save drivers a significant amount of money.
In 2019 most insurethebox customers renewing after their first year were offered a premium discount of 36% on average. These customers are considered as ‘the best drivers’, earning more than 60 monthly Bonus Miles; last year they accounted for 59% of all first-year renewals.
First-year renewals earning between 20-59 monthly Bonus Miles last year were offered an average discount of 17%. Customers below 20 Bonus Miles are considered ‘poor drivers’ with habits like consistent speeding, and therefore have a significantly higher risk profile; first-year renewals in this group received a price increase of 5% on average last year.
Consistent or excessive speeding could also lead to a policy cancellation, however; insurethebox actively supports its customers in gaining the maximum Bonus Miles by speeding alerts and other educational campaigns.
Holding one of the largest data sets in the UK, insurethebox has a unique understanding of the risks associated with driving behaviour. With the data coming from a customer’s black box, insurethebox analyses five key areas: speed (and the type of road), time of day, smoothness (acceleration/braking), breaks on long journeys and motorway miles.
Through these key factors in driver safety insurethebox customers receive monthly Bonus Miles. These are not just free extra miles but the annual total is used to calculate a personalised premium at the end of the policy year.
Gary Stewart, Service Manager at insurethebox: “With consistent communication and a personalised online portal, we make clear to customers the driving behaviours that will put them and other road users at risk, and therefore can have a detrimental effect on their renewal premium. By giving young drivers insight into their own driving, we help them develop good motoring habits – as well as a potential benefit on their wallet.”
There are traditional insurance factors that impact renewal pricing in addition to driving behaviour, such as moving house, but for someone renewing without circumstantial changes, the second year of insurance could be a lot cheaper – if they are a safe driver.
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Nathan Manley/Pihla Hellgren
Notes to Editors
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.