Tracking tech to cut insurance premiums
SOCIAL media, use of public transport and length of driveways could all be tracked by insurers in the future as they look to personalise motorists’ policies.
Insurance firms want to create better risk profiles to provide more accurate annual premiums. Some people will be charged less, although for others prices could soar.
Telematics data will be increasingly used to track journeys and flag up those who drive past junctions or on dangerous stretches of roads regularly. Owners with shorter driveways are statistically more prone to car theft, while tracking contactless payments on buses or trains can confirm you’re not using your car for commuting and lead to reduced premiums.
Rob Cummings, general insurance manager for the Association of British Insurers, said factors such as age, driving history and postcodes already provide an accurate picture, but changes will come in the future. “Insurers want to price the premium as accurately as possible and are continually refining the factors and data that they use,” explained Cummings.
“For example, telematics devices have enabled ‘pay how you drive’ insurance policies, which give insurers a better understanding of an individual’s risk.”
“Insurers want to price the premium as accurately as possible and are continually refining the factors and data”