Young drivers are more likely to be involved in car accidents, but being able to tailor a policy to an individual’s driving is better than assuming that all drivers are the same. Low mileage drivers will benefit from Usage-Based Insurance (UBI). It adds fairness by having different premiums for someone who only drives 1000 miles per year to those driving more than 20,000 miles per year. Drivers who have recently passed their driving test and are taking out their first policy will be considered high risk. With vehicle telematics insurance, premiums will be lower at the outset or within the first few months, after insurers have given drivers a chance to prove themselves. Telematics based insurance premiums are beneficial for drivers who travel within the speed limit and an indicator of those who don’t.
This publication (Effective Telematics) provides insight into how telematics data can be leveraged and combined with other sources of data to profile drivers to calculate insurance premiums. This approach would also identify where drivers reduce speed when they see a roadside speed camera and increase speed once they have driven past it; a behaviour I have often observed even with drivers travelling at the speed limit. Telematics promotes consistent driving and steers away from erratic driving; pun intended!
Robert is an information security consultant with over 20 years of experience across a diverse range of organisations, both in the UK and internationally. Robert graduated in 1997 with an honours degree in software engineering for security and safety-critical systems. Robert is contactable directly through LinkedIn.