Pay-as-you-drive policies key to bringing down spiralling premiums – Trimble Fleet Solutions
The findings of the research also indicate significant regional variations in insurance costs, with the North of England seeing the highest comprehensive premium increases.
Currently, insurers base premiums on the age of the driver, gender, where they live and the age and make of car they drive. However, telematics provider, Trimble Fleet Solutions, believes that an alternative approach to avoid paying premium rates would be to base costs on how a person actually drives.
Martin Otter, insurance development manager, Trimble Fleet Solutions, said: ‘A fair way for insurers to charge for insurance is to judge how a driver actually drives. Rather than basing premiums on assumptions, insurers can now take advantage of technology to help make premiums more affordable.’
Trimble is currently working with insurance companies to deliver in-vehicle technology to capture data that enables insurers to base their premiums on times of travel, car usage, speed and harsh manoeuvres.
‘Some insurers have already adopted a “‘pay-as-you drive” approach to premium calculations, and although still in its infancy, it is already proving popular with younger drivers facing expensive traditional insurance quotes.
‘Faced with the knowledge that premiums could be significantly reduced, drivers are also more likely to drive more safely, making the roads a safer place,’ he added.
Trimble Fleet Solutions believes this innovative approach to assessing premiums is equally applicable to fleet insurance companies and the organisation recently announced that it is collaborating with one of the largest fleet insurers globally on a new integrated fleet risk management programme.