Drivers born in certain years could soon face mandatory telematics insurance, commonly known as black box insurance. Aviva, a leading insurer, is urging the Labour government to require all drivers aged 17 to 24 to have telematics policies during their first year on the road.
Research Highlights Risks for New Drivers
According to new research from Aviva, new drivers are more than twice as likely to file a claim compared to those with at least one year of experience. The insurer believes telematics-based policies can help mitigate these higher incident rates. Aviva's data shows that drivers who receive feedback from telematics tracking experience a 50% reduction in collision claims over time, compared to a 30% reduction for those without such policies.
Industry Calls for Action
Owen Morris, chief executive for UK personal lines at Aviva, stated: “Action needs to be taken to make our roads safer, not just for young drivers, but also vulnerable road users and other motorists who may be involved in accidents where a younger person is driving. The data shows there is an increased likelihood of accidents in the early stages of driving and telematics policies can help support new drivers in their highest-risk period.”
He added: “By monitoring when, where and how people are driving, telematics can act as a virtual coach, providing advice on improving riskier behaviours, incentivising safer driving and helping to reduce premiums. Importantly, telematics can provide reassurance to young motorists and their families, particularly when they are driving alone or at night. While other measures, such as progressive licences, could improve driving in inexperienced motorists, we’d encourage the government to consider making telematics policies a legal requirement for young people during their first year of driving.”
How Telematics Works
Telematics devices monitor driving habits using one of three methods: a mobile phone app, a black box installed inside the car, or a plug-in device connected to the On-Board Diagnostic (OBD) port. These devices collect data on driving behaviour and assign a driving score, which insurers use to assess risk and adjust premiums accordingly.
Once a driver obtains a telematics policy, the device is fitted to the car or installed on a smartphone. The insurer then collects information about driving habits and provides feedback through an app or dedicated account, helping drivers improve their skills and safety.
