13/05/2013
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
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Cobra UK has launched Cobra Asset Control, three new and innovative products for the fleet vehicle tracking market. Read full story »10/10/2012
Cobra UK has welcomed the Association of British Insurers’ (ABI) call for an overhaul in how young people learn to drive, following a report into how to reduce the high crash risk young drivers represent and to bring down their motor insurance premiums*. Read full story »Restored from an archived copy of this page captured on 03/10/2013. Product availability, specifications and pricing are being reconfirmed.