With car insurance premiums escalating it becomes more important to individualise car insurance premiums and tailor them to the risks presented by specific drivers. Data from the UK has revealed that young drivers in the UK have to pay up to 20% of their salary on their car insurance premiums!
It is also no longer possible in Europe to differentiate between male and female drivers and base a different calculation merely based on gender. The only way forward to ensure cheaper car insurance premium appears to be to have the calculation based on science – or scientific measurement of driver behaviour.
Cheaper Car insurance has been made possible for quite a while based on Pay as You Drive car insurance. It has always been possible to calculate car insurance premium based on the distance that you drive and this has evolved further into “Pay How you Drive”
This has also opened a door of opportunity for vehicle telematics service providers. The close cooperation between specialists in vehicle telematics and insurance companies has led to the fast growing insurance telematics industry. Anton Ossip, Ceo of Discovery Insure has described this process as using the “science of safe driving” to calculate car insurance premiums.
We have recently also discussed this topic with Deon Du Rand, Executive Director Strategic Projects at Ctrack and gained more insights as to the expertise required to provide insurers with the required data on driver behaviour measurement. Ctrack is a world leader in vehicle telematics and has developed to date more than 600,000 of these telematics devices.
We would like to share some of these insights on how driving behaviour is measured using on-board telematics devices:
What are the parameters used to measure and report on Driver Behaviour?
There can be little doubt that the best way to ensure affordable insurance premiums for younger drivers will be to base the calculation of insurance premiums on actual driving performance. This could allow the responsible young person to share the scientific facts of his driving behaviour with his insurer and to have his payable car insurance premium accordingly! On -board vehicle telematics technology may be the lifeline for many young drivers who struggle to afford car insurance premiums as a result of the irresponsible claims history of their piers.
For more on vehicle and insurance telematics also view: