- 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.