Brits’ appetite for telematics stuck in first gear
In the dark: just 3% of British drivers have a telematics car insurance policy and a quarter (25%) don’t know what telematics is
Big Brother: 26% won’t consider taking out a policy, with ‘big brother’ surveillance the biggest cause of concern (62%) followed by fear of personal data being sold onto other companies (49%)
Tipping point: £98 is the minimum drivers would need to save on their annual premium to consider taking out a telematics policy.
Car insurance technology is baffling British drivers with just 3% having taken out a telematics policy, according to research by price comparison and switching service Uswitch.com. And, despite telematics being introduced over ten years ago, a quarter (25%) of British drivers have never even heard of the technology .
Telematics, also known as ‘black box’ insurance, aims to offer drivers cheaper premiums by basing them upon actual driving habits rather than statistics. However, the Uswitch.com research reveals that 26% of British drivers would rule out taking out a telematics policy because of fears over their privacy. Of these, 62% feel it’s too ‘big brother’ and 37% don’t want their driving monitored by their insurance company. Furthermore, almost half (49%) are worried that their data could be sold to other companies and a third (33%) don’t want their car tampered with when the black box is installed .
Ahead of the Department for Transport’s study on telematics and its potential impact on road safety for young drivers, the Uswitch.com research reveals that not all drivers are against telematics solutions. 45% of drivers would consider installing a ‘black box’ – to learn more about their own driving skills (33%), to improve their driving (23%) or to see how well others are driving their car (5%).
To make telematics worth their while though, consumers would want to see savings of at least £98 a year on their insurance premium. Yet this amount differs hugely with age. Those aged 18-34 would need to save £173 to consider taking out a policy, while those over 65 would be happy with just £72 of savings.
The research also reveals that drivers are confused about what happens with their data and who owns it. When asked, 58% incorrectly believed that telematics data is shared between insurers, 35% thought they could use their telematics data when applying for insurance and 14% believed they own their own data.
Rod Jones, insurance expert at Uswitch.com, says: “Despite telematics being nearly ten years old, drivers are still in the dark about ‘black box’ insurance – confused about the technology and the full benefits it can offer.
“Concerns around personal data are a major barrier to telematics adoption – in particular, how the data will be used and by whom. It’s vital that the Government and the insurance industry addresses these concerns if this technology is going to take off.
“Until this happens, telematics insurance policies are likely to remain a low priority for drivers. Millions of drivers may be missing out on hundreds of pounds of savings each year, especially young drivers who are faced with high car insurance premiums.”
For more information visit http://www.uswitch.com/car-insurance/ or call 0800 093 06 07
FOR MORE INFORMATION
Katherine Moss
Phone: 020 3021 5893
Email: katherine.moss@uswitch.com
Twitter: @uswitchPR
Notes to editors
Research carried out online with the Uswitch.com Consumer Opinion Panel in March 2015 amongst a sample of 1,146 GB adults.
When asked ‘Have you heard of telematics/black box car insurance?’ 3.2% answered ‘Yes – and I have it,’ and 25% answered ‘No.’
When asked ‘Would you consider getting a telematics car insurance policy?’ 26.2% answered ‘No.’
Of those who indicated that they would not consider telematics, when asked ‘Which of the following reasons explains your choice’ 62% said ‘I wouldn’t like being spied on, it’s too much like ‘big brother,’
48.7% said ‘I don’t want my data sold to other companies,’ 37.3% said ‘I don’t want my driving monitored’ and 32.8% said ‘I don’t want somebody tampering with my car by fitting a black box.’
When asked ‘What is the minimum that you would need to save on your annual insurance premium to consider having telematics?’ 9% said ‘any saving at all’, 1.2% said ‘less than £25; 8.1% said ‘£25-£50’; 16% said ‘£50-£75’; 19% said ‘£75-£100’; 15.7% said ‘£100-£150’; 7.7% said ‘£150-£200’; 3.9% said ‘£200-£300’; 1.4% said £300-£400’; 0.4% said ‘£400-£500’; 1.7% said ‘up to £500’; 9.3% said ‘nothing would make me consider it’; 6.8% sad ‘don’t know’. The mean was calculated at £98.
The mean amount for 18-34 year olds was calculated at £173 and for those 65+, the mean was calculated as £72.
When asked, ‘Would you consider getting a telematics car insurance policy?’, 45.3% said ‘Yes.’
Of those who indicated that they would consider telematics, when asked ‘Which of the following reasons explains your choice?’ 32.6% said ‘I’m curious to learn about my driving,’ 23.2% said ‘I think it would make me a better driver,’ and 4.9% said ‘I’d like to learn how others drive my car, for example children that are on the policy.’
When asked ‘Which of the following do you think are true about telematics car insurance? Tick all you think are true.’ 57.9% chose ‘The telematics data is shared between sharers,’ 35.1% chose ‘I can use my existing telematics data with different insurers when applying for insurance,’ and 13.5% chose ‘I own the data collected about my driving.’
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