Insurance Prices To Rise Without Telematics

Insurance Prices To Rise Without Telematics
New EU regulations are set to come into force which will see telematics boxes fitted as standard to all new cars from 2015, which could lead to a change in the cost of car insurance premiums.

It is hoped that this will aid emergency services in identifying and finding crashed and stolen vehicles. It is estimated that half of all cars on the road will have a telematics box installed by 2020.

The technology is still relatively new to the car insurance sector, having first launched in 2003, but it is growing very rapidly.

 

Our Thoughts

Our Thoughts
Simon Bennett, Director of woop, commented: "At woop, we're already using telematics technology as standard with our policies. The difference with woop, compared with the telematics policies being offered by other insurance companies, is that there are no mileage limits and no curfews, offering independence for new drivers.

"In addition to this, having a telematics box is proven to reduce the number of accidents by between 30% and 40%, which can only be a positive."

The data collected by insurance companies throughout the year using the telematics technology is also used to reward good drivers with significantly reduced price insurance premiums when it comes to renewing their policy.