Saving money on our car insurance is something we all want to do. But when the time comes to switch providers, we look at who’s offering the lowest price and base our decision on that alone.
This can be a false economy, because 12 months later, when it comes time to shop around again, we do this exact same dance. While we might save a few pound, it’s more work on our part, and we don’t really gain much else.
It’s frustrating because it would be easier for us, and insurers, if we could form a long-lasting relationship with one company instead. One in which our policy decreased in price every year instead of increased – which is so often the case.
Why Do Our Policies Go Up In Price?
In truth, our policies go up in price based on economic factors beyond our and our insurers control. But prices are also influenced by accident statistics and risk calculation. Those of us who’ve claimed our motor insurance tend to understand and accept that our policies will go up in price – especially if the claim was our fault in part.
This is frustrating for those of us who’ve never claimed or been involved in an accident. We feel a sense of injustice when we drive carefully; but then end up paying more money due to other people’s negligence or mistakes.
If only there were another option and a solution to this problem. Well, now, due to advances in technology; there is.
Telematics Technology Can Offer The Solution
While still somewhat obscure, telematics technology is growing in popularity and importance. We think it’s intrinsically linked with the future of car insurance, as more and more people discover the benefits.
The technology records motorists’ habits and offers them scores after each car journey. As well as practical feedback and tips on how they could improve their driving skills in general. But based on their individual actions and backed up by real-life data.
Telematics software collects this data over time, including each driver’s improvements, and feeds it back to their insurer. Then, when it comes time to renew their policy, the insurer will be able to calculate their new premium based on their actual driving behaviours.
If that driver has steadily improved or achieved consistently high driving scores, the insurer will struggle to justify increasing the policy price. This gives the customer a degree of control over their own policy – for the first time ever.
Of course, the policy may go up in price for other reasons. But for once, a customer can legitimately challenge a price hike and use actual data to reasonably argue for a discount. This way, both insurers and customers can work together to make their premiums more affordable instead of jumping ship every year or two.
Careful Drivers Stand To Make The Most Savings
Not all motorists will be comfortable with being monitored by their insurance company in this way. They may have reservations about possible surveillance, but it isn’t really that. It’s merely a way to improve road safety, so insurers can justify offering the best prices to the safest drivers. Instead of all motorists being punished because of a few bad drivers.
Drivers that are already careful when behind the wheel have nothing to lose and everything to gain. They won’t need to change a thing and can just look forward to the savings they’re going to make. Drivers who are concerned with their own and their family’s safety will also feel the benefit.
Only those most resistant to change would consider not to use this technology. Many of us are attached to our bad habits and have no desire to stop indulging them. Using or not using mobile telematics is entirely our choice, but should our premium increase, we only have ourselves to answer to.
The current UK market leaders are Bluesona, who offer their LoopMatics software to customers through various insurance companies. LoopMatics helps motorists overcome distracted driving, as well as offering other excellent methods to improve safety behind the wheel. The company is partnering with an increasing number of insurers and is well on its way to becoming a household name.
To get involved, once your car insurance comes ready for renewal, ask your insurer if they use this technology. If not, find one that does to take full advantage of telematics.