Motorists are intending to switch to a telematics insurance
policy in the near future, according to research by comparethemarket.com.
The price comparison website conducted a survey, which revealed 3.8 million drivers are thinking of switching to a ‘black box’ policy, hinting at wider acceptance of telematics as a useful tool for businesses and private drivers.
Currently only 2% of drivers choose to use the insurance-linked technology, but this is expected to rise to 10% in the next two years. Many businesses have already adopted a form of telematics in their vehicles for other services including improving driver behaviour, vehicle tracking and remote diagnostics.
The findings coincide with drivers’ concern over the future cost of car insurance, with 68% saying they expect prices to rise in the next 3-5 years.
Vince Powell, Managing Director at AX Innovation, said “As the cost of car insurance continues to rise, drivers are increasingly looking for ways to reduce their premiums. Telematics or ‘black boxes’ give safe drivers the opportunity to avoid the burden of increased premiums caused by dangerous drivers.
“However, there’s more to telemetry than just reducing insurance bills. Controlling fleets of vehicles more effectively, driver behaviour, vehicle monitoring and improved maintenance are just some of the benefits which businesses and private users can utilise.
“Telematics can also assist with disputes over speeding fines or congestion charges and deliver valuable information in the event of an incident. Whether it’s an individual seeking to save money on their private car insurance or the manager of a large fleet, telemetry offers significant advantages.”
AX offers AX Connect, a range of connected vehicle devices and software that provides detailed reports to help manage driver behaviour, misuse and disputes as well as vehicle location services.
More information about AX Connect can be found here.