More than half of motorists have said they expect to switch to a telematics car insurance policy in the next five years, research has revealed.
Research by Gocompare has revealed that 57% of UK drivers are open to the idea of a ‘black box’, and expect to be using one within five years.
A black box, or telematics, insurance policy sees a small box installed in a car, which measures driving habits – allowing insurance premiums to be set based on how an individual drives.
“Over the last few years we’ve seen car insurance premiums reach record highs,” said Scott Kelly, head of car insurance at Gocompare.
“The outlook for 2012 is little better with further increases expected, as well as a degree of uncertainty for young drivers once the European Court of Justice gender ruling takes effect; insurers will no-longer be able to take gender into account when calculating premiums.”
It was found that the vast majority of drivers think that their car insurance premiums should be based on the way they drive, while 97% think that careful drivers should be rewarded with cheaper insurance.
Telematics are currently aimed at younger drivers, who usually have very high premiums. Using telematics can save young drivers an average of £521.
“Most insurers currently price their policies based on a series of generalisations around claims experience, location, age, sex and the type of car,” added Mr Kelly.
“Most don’t consider an individual’s actual driving habits until they have built up a record of safe, claim-free or incident-free driving over a number of years and have subsequently earned a no-claims discount.”
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