- Motor insurance costs are damaging job prospects of UK
youngsters between 17-21
- Telematics can provide an immediate answer to helping reduce
premiums
- Telematics reduces insurers' risks which will reflect in lower
insurance costs
Cobra UK believes that unless motor insurance costs come down
over the coming years younger drivers will avoid learning to drive,
which will drastically reduce their ability to get their first job
and will restrict the future talent pool for employers.
Cobra UK has welcomed the latest Cost of Motor Insurance report
issued by the House of Commons Transport Committee Friday
20th April which recognises that the cost of insurance
is an important issue with significant economic and social impacts
on all motorists, especially young drivers.
The Department of Transport's National Travel Survey 2010 issued
last year further revealed the scope of the problem. It said 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.
"With young male drivers being hit the hardest with premiums of
£5,000 commonplace for their first car, something must give soon or
a generation of youngsters between 17 and 21 will simply not be
able to afford to drive even if they want to," explained Andrew
Smith, Managing Director of Cobra UK.
"This will drastically restrict their job prospects and in turn
reduce the number of young people being employed by companies. The
situation is becoming very serious and we are pleased the Transport
Committee is recognising the value of telematics in helping to
control rising insurance premiums for all drivers.
Cobra already provides the technology that powers the
Co-Operative's Young Driver Insurance. Telematics does not
discriminate against gender or age, and will not only lower an
insurance company's risk, but reward drivers for good driving with
lower premiums. Cobra has already seen its technology have a
positive impact on drivers taking up the Co-Operative's Young
Driver policy.
Telematics technology gives drivers the chance to prove they are
safe drivers by recording how they drive, measuring key outputs
from a car's journey in real time such as times and distances, fuel
consumption, mileage, cornering, braking, average speed, top speed,
the car's location, and journey type.
Smith added: "Telematics technology ensures the driver's
insurance is based on how well they actually drive as an
individual. The technology encourages safer driving, can help limit
peak time congestion on the UK's roads, and can even help reduce
accidents among private and professional drivers."
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 the time, distance and location of
journeys covered by the driver
- Pay Per Use - premiums are based on a driver's mileage
Pay how you drive insurance will automatically deliver lower
premiums for those drivers who drive sensibly and pay as you drive
means drivers only pay for the journeys they undertake.
Pay as you drive insurance also incentivises drivers to use
their car away from the morning, late afternoon and holiday driving
peaks, helping reduce both premiums and congestion at peak
times.
"Our telematics technology is already available here and now for
insurance companies wanting to adopt this approach. It's the
enabler for making an immediate and dramatic impact on drivers'
insurance premiums, as well as reducing insurers' risk," Smith
added.
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