The best drivers renewing after their first year were offered a 31% discount on their car insurance premium
insurethebox has released data which shows that driving safely can not only save lives but bring financial value to young drivers. In 2020, the best drivers renewing after their first year were offered a premium discount of 31% on average.
With a decade of experience in the sector, and over 5.5 Billion miles of driving data, insurethebox maintains a unique understanding of the risks associated, by monitoring its customers’ driving behaviour in 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.
Those customers who are considered as ‘the best drivers’ earned more than 60 monthly Bonus Miles, out of a possible 100, and accounted for 64% of all first-year renewals last year.
First-year renewals earning between 21-59 monthly Bonus Miles were offered an average discount of 13%. Customers below 20 Bonus Miles are considered ‘poorer drivers’ by the telematics insurance provider; namely displaying undesired traits like persistent speeding, which translated into a significantly smaller discount of 6%.
Gary Stewart, Service Manager at insurethebox: “We try and make it simple for our customers – drive safely and you will be rewarded; it’s an important focus for us, not just as an insurer, but also as a road safety advocate.”
“Unfortunately, young drivers are amongst the highest risk groups for accident frequency in the UK, and as such, costs associated with driving at this age can be significantly more, it’s no secret. So, we want to give young drivers the chance to impact their premium themselves”.
At insurethebox, consistent or excessive speeding could also lead to a policy cancellation, however, the insurer actively supports its customers in gaining the maximum Bonus Miles by speeding alerts and other educational campaigns.
“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”, Gary Stewart adds.
There are, of course, traditional insurance factors that impact renewal pricing in addition to driving behaviour, such as moving area, but for someone renewing without circumstantial changes, the second year of telematics 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.