In a move welcomed by telematics experts Cobra UK, the
Association of British Insurers (ABI) working in partnership with
the British Insurance Brokers Association (BIBA) has produced two
comprehensive guides* educating customers and insurers on "pay how
you drive" (telematics) car insurance.
As a relatively new technology, Cobra UK is pleased that a
leading and visible automotive body has taken steps to educate
drivers over the steps they can take to reduce their insurance
premiums through telematics.
The "pay how you drive" guide for consumers outlines to drivers
new to telematics the benefits of the technology and also the
safeguards they can take to ensure their driving information is
kept secure.
The second guide for the insurance industry will also help
outline good practice to ensure customers using telematics as part
of their insurance premium are treated fairly and how to best
handle their data. The creation of this guide for insurers sets out
to ensure they manage and handle telematics data within the
confines of data protection legislation ensuring customers are
treated fairly and legally.
Cobra UK has been at the forefront of innovation in the
telematics industry, providing technology and integrating systems
aimed at bringing down young driver insurance premiums as part of
the Co-Operative's Young Driver Insurance.
Fleets have also seen the benefits of telematics as the
technology helps fleet managers analyse driver behaviour and if
necessary change it so employees can drive in a more efficient
manner. This can help lead to reduced fuel and maintenance costs as
well as lead to fewer accidents. All of this helps not only the
fleet manager's running costs but also the vehicles residual
values.
Andrew Smith, Cobra UK managing director said: "We are market
leaders of telematics technology aimed at reducing insurance
premiums and these latest guides from ABI and BIBA will help
bolster consumer and industry confidence in such technology. We're
seeing more interest in telematics as drivers realise the
technology can not only help reduce their motoring costs but also
support them in the event of an accident by providing evidence of
driving patterns up to the point of incident."
Kate Carr, the ABI's Head of Fraud and Specialist Lines said:
"'Pay how you drive' policies have the potential to dramatically
change the motor insurance market. They have been developed to
recognise and reward good driving behaviour through lower motor
insurance premiums, and to encourage safer driving generally. The
emergence of telematics technology presents a new challenge for
insurers as they design new products that best meet the needs of
their customers."
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*Pay How You Drive Motor Insurance and Selling Telematics Motor
Insurance Policies guides are available from the ABI at:
http://www.abi.org.uk/Publications/Publications_List.aspx