The UK motor industry could continue to
lose its young car buyer base over the next decade if something
isn't done to reduce car insurance costs for the under 20s
according to telematics provider Cobra UK.
Only one in three (35%) of 17-21 year olds
have a full licence, and out of the 65% who don't have a licence,
34% said insurance costs were preventing them from
learning to drive according to the Department of Transport's
National Travel Survey 2010.
Cobra believes it is time for insurers to
switch to driver based rather than car based policies, powered by
telematics technology which is already commercially available. It
measures all key outputs from a car's journey in real time such as
times and distances, fuel consumption, mileage, average speed, top
speed, location, journey type, cornering dynamics and accelerations
and decelerations.
"It's time for a major insurance rethink,
especially for younger drivers," said Cobra UK Managing Director
Andrew Smith.
"If insurance prices are deterring and
preventing younger drivers getting on the first rung of the
insurance ladder it's time to change things. Telematics is a proven
technology that is already available and both insurer and driver
can choose the best options that suit their circumstances which
will help dramatically reduce premiums," he added.
Cobra's telematics technology already
powers three driver based insurance packages. These are:
·
Pay How You Drive - the better
your driving the lower your premiums
·
Pay As You Drive - based on time,
distance and location of journeys covered by the driver
·
Pay Per Use - based on a driver's
mileage
Looking at the bigger picture, driver
behaviour based insurance will also improve the driving standards
among under 20s as the better they drive the lower their premiums,
which fits in with the Government's aim of accident reduction among
younger car owners.
"Manufacturers and their dealers have to
sit down with the insurance companies to see how they can speed up
the process of moving to a driver behaviour based insurance
platform before we lose the new and used car buyers of the future,"
said Smith.
Cobra already provides a
telematics solution for the Coverbox pay as you drive insurance
policy, which the Co-Operative is using to power its Young Driver
Behaviour Insurance.
...Ends...
For further press information call Steve
Carman, Kally Carder or Margaux Smale at Nobull Communications on
01628 526208 or kally@nobull-communications.co.uk