Telematics based car insurance is on the increase and according to the ABI (Association of British Insurers) the number of policies issued has increased by 40% in the last year. Is this the solution for young drivers insurance?
Some parents try to use the old trick of buying a 2nd car and insuring it in their own name, saying they are the main driver. In reality the car is for the young driver to use. This is called “fronting” and is illegal. It is fraud, plain and simple and it is treated very seriously. It potentially leads to a whole series of consequences none of which are good. It’s not worth the risk and is one area as a company we avoid with our clients.
We prefer honesty and rather see education of young drivers as the solution to high premiums and Telematics can help in the quest. For those who don’t know, telematics is the inclusion of a “black box” in the car to monitor driver behaviour behind the wheel. It is potentially the route to lower premiums for younger drivers. But is it the right way to go for everyone?
For some yes but for others sadly no. The problem for any parent looking to help with this sort of insurance for their child is that although your offspring may tell you they drive safely and whilst you are with them they in fact do, what do they behave like when you are not there? Telematics will soon discover as it is the ever present monitor.
For youngsters, or their parents, trying to find car insurance for learners or newly qualified drivers it is still expensive but happily this method can be a good solution. The route to lower premiums could be by telematics if the driver behaves responsibly. There is usually a fee to have the box fitted and then with some schemes there may be restrictions on the times the car can be used. Other schemes have no restrictions and with savings of up to 25% it is certainly worth considering.
The box monitors the style of driving from cornering and braking to acceleration as well as the types of roads used and times of day the driver is active. Some schemes penalise the driver for bad behaviour and if no correction to the manner of driving is seen can, with notice, cancel the cover mid term. Other schemes merely alter the renewal cost based on data from the initial year and by that way seek to address “bad” behaviour. Links to apps are possible with a number of offerings and this visual feedback can be constructive.
Do 1 Stop Insurance offer such schemes? YES. Just click on any of the following links to see what our chosen provider Marmalade (yes that really is their name) can do for you.
New Drivers Insurance– Get a guide price in seconds and see how much you can save with our black box insurance for young drivers!
Students Insurance– Short term cover for students with a full licence on a parent’s or friend’s car, without risking their No Claims Discount.
Cars for Young Drivers – New wheels with free insurance From £169 per month!
Learners Insurance – From just £2.12 per day. Flexible cover on a parent’s or friend’s car, without risking their No Claims Bonus!