Some younger and more inexperienced drivers could reduce their car insurance premiums nearly sixfold by opting for telematics – or so called ‘black box’ cover – according to new research.
The study from comparison site bonkers.ie suggests that choosing a telematics policy over conventional car insurance can save some drivers more than €3,000.
The research was carried out using quotes from insurers AIG, Aviva, Zurich and Fastnet within the past six months.
One sample quote for a 20-year-old driver with a full licence saw them able to obtain comprehensive cover with a telematics policy for €570.08, compared to the lowest quote for a standard fully comprehensive policy of €3,900.
According to bonkers, in another case a 23-year-old driver still on a learner permit who had three penalty points was able to get third-party fire and theft cover for €968.31 with a telematics policy, whereas the quote for a standard third-party fire and theft policy was over €2,800.
Telematics car insurance cover uses smart technology to track a driver’s habits, and involves a small device – or sometimes a smartphone app – being installed in the insured’s vehicle to monitor metrics such as speed, braking, acceleration, and cornering.
This information is then shared with the insurer, and safe drivers are then rewarded with lower premiums.
Daragh Cassidy, from bonkers.ie, said the analysis “shows that telematics policies can be significantly cheaper for younger drivers, with some of the quotes we examined showing savings of thousands of euro compared with a conventional policy.
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“Our research shows it’s very possible for younger drivers to get on the road for under €1,000 by choosing a telematics policy, especially if they have their full licence,” he said.
“But even those with a learner permit can find very competitive quotes, although the price will vary widely depending on a driver’s individual circumstances, and their choice of vehicle,” he stated.
Mr Cassidy added that opting telematics could also help reduce insurance costs for “those new to Ireland who won’t have built up a large amount of driving experience in the country”.
However, drivers are advised to check any policy excess before buying insurance, as this can be higher for some telematics policies, and to make sure they are aware of any specific policy conditions such as limits to how much they can drive.
The research comes as the Central Bank has published new figures showing that increasing damage claims contributed to the average cost of a car insurance premium rising by 4% to €655 last year.
