What is Pay How you Drive Insurance?
Insurance costs are rising all the time, particularly for younger drivers facing sky-high premiums. This causes plenty of frustration for young drivers who have just got their licence, but also for experienced drivers who believe that the cost of their insurance should be based on how they drive. But there’s a relatively new insurance product available that’s designed to change all of this and to shake up the insurance market: Pay How you Drive or telematics insurance.
Introducing Pay How you Drive insurance
Pay How you Drive insurance works by installing a small telematics GPS device into your vehicle – basically, a small black box! This device will measure the speed of the vehicle, time of driving, road condition and braking and accelerating habits. It can also track your vehicle if it’s stolen or help breakdown services find you more quickly. Last but not least, it provides reassurance to parents of new drivers who can monitor their children’s journey and their behaviour behind the wheel! The data from the device is transmitted to your insurance provider for analysis.
What are the benefits?
Pay How you Drive insurance rewards responsible driving and focuses on the individual driver’s behaviour and not on a demographic generalisation. A quarter of young drivers are involved in a crash during their first two years on the road, so insurance premiums are sky-high for all young drivers, penalising the more responsible and safer drivers. Telematics insurance gives drivers the chance to prove that they can drive safely. Driving behaviour is analysed on an online telematics account – by driving responsibly, your score will go up which could earn you a reduction in your insurance premium. Of course this works the other way, too!
Pay How you Drive insurance – the future
The popularity of Pay How you Drive insurance is increasing rapidly. Drivers see it as a way to reduce their insurance costs, monitor and improve their own driving and help to keep their car safe. First time insurance customers saved over £800 with a leading telematics insurance provider, and it’s estimated that customers investing in Pay How you Drive insurance will save £20 million in the next three years.
There is a wide range of Pay How you Drive insurance providers available online, including leading brands such as the AA and Admiral. It’s well worth shopping around, as some providers include satellite navigation and automatic links to emergency services in the event of an accident. It’s clear that Pay How you Drive insurance is a breath of fresh air for drivers across the UK, and is likely to increase in popularity as drivers demand to take control of their insurance costs.