Crispin Moger, CEO at Marmalade, explains how his business is managing to reduce the cost of car insurance for young drivers at a time when the average premium is rising, particularly for this age group.
“A recent index compiled by Towers Watson and Confused.com cites a 2% hike in car insurance during the last three months of 2014, following three years of falling premiums. Reports of the survey found that premiums for ‘accident prone’ teenage drivers rose by 4.5% in the same period. This description is not only unfair to many young drivers on the road today, but also ignores the very real benefits that telematics is providing for the more inexperienced drivers.
“Looking at the national statistics, it is true that young people are involved in more accidents but telematics is having a very positive effect on the safety of this age group. Only one in 20 of our customers, aged between 17 and 25, are involved in accidents, compared to one in five young drivers across the UK.
“Using clever telematics technology, we monitor driving and flag to young drivers when there is a problem based on accelerating, braking, cornering and speed. If there is a problem, we call our drivers within 24 hours to discuss what happened and provide advice on avoiding the same issues. This has enabled us to achieve a fantastic safety record, which has in turn meant that we can keep our premiums low. We have not seen any significant increases over the past year and actually plan to reduce premiums across our product portfolio during 2015.”