Young drivers are at greater risk of getting involved in a car crash than any other age group, which is widely attributed to their susceptibility to impulsive behaviors due to brain immaturity, along with lack of driving experience, which is one of the reasons why auto insurance for young drivers is more expensive than for adult drivers. Young drivers usually pay higher insurance premiums because they are at a very high risk of crashing, but insurance companies allow all drivers to reduce their premiums by offering various programs that aim to encourage safe driving practices and prevent risky driving behaviors.
One of the most popular such programs that many insurance companies have been providing lately, and is particularly suitable for young drivers, is telematics insurance, which allows them to install a telematics “Black Box” in their clients’ vehicles, in order to monitor the cars’ movements and be able to assess an individual’s driving habits. On top of helping them save money on insurance, telematics policies have proven to be effective in reducing crash rates for young drivers, as well, according to a study that was recently conducted in the UK.
Ingenie, a company that provides insurance telematics solutions, based in the United Kingdom, did a study to determine the crash rates among young drivers, and what factors cars frequency is affected by. They analyzed car accidents that their customers were involved in over the course of the past two years, and found that the risk of getting in an accidents for young drivers between the ages of 17 and 25, within the first six months of obtaining their licenses that had telematics policies dropped by 40 percent. This percentage translates into nearly 29,000 less accidents a year. Furthermore, the report shows that the number of accidents Ingenie customers were involved in fell by 21 percent.
Another interesting finding from the study is that 73% of the young drivers who don’t have telematics policy said that they would be interested in purchasing one, whereas as much as 80% of Ingenie customers who have such a policy said that it has helped keep them safe on the road.
The report contains information that the company had compiled after analyzing 200 million miles of telematics data, and it was part of the UK Government initiative for exempting young drivers from the Insurance Premium Tax if they purchase a telematics policy.
Telematics insurance provides an important insight into an individual’s driving behaviors, with the “Black Box” monitoring various parameters, including their vehicle’s location, acceleration, braking, and how long they have been driving for. This way, the insurance company can determine whether a certain driver is prone to harsh acceleration or braking, which would indicate that he/she is prone to risky driving behaviors, allowing the company to adjust the insurance premiums accordingly.