Fleet businesses turn to Black Box data to bring down insurance premiums

A new initiative is underway to help fleet companies reduce the amount of accidents and bad driving incidents by using Black Box technology. This technology is now being offered to fleet companies for vehicles with multiple drivers in order to help with sky high insurance costs.

The first sets of data have now come back and Co-op Insurance has analysed the driving habits of 10,000 young drivers who have been fitted with the new technology, they found that they were 20 per cent less likely to have a crash than those with standard insurance.

Telematics customers also had less serious accidents, with a typical claim 30 per cent less than ordinary customers.

Young drivers have always faced increased premiums because they are statistically less safe on the roads. But the rules has always penalised safe young drivers.

Premiums for men aged 40 to 49 have gone up by 6 per cent since April 2010, but for those aged 17 to 22 they have increased by 40 per cent, according to the AA. Those aged 23 to 29 have seen increases of 35 per cent.

“It’s predominantly because of the size of claims, as opposed to frequency,” says Ian Crowder, AA spokesman.

“Accidents involving younger drivers, particularly men, are more likely to result in death or serious injury.”

But young people with black boxes can see their premiums fall dramatically.

According to renewal figures from insurethebox, more than two thirds of young drivers saw their annual premiums fall by as much as 22 per cent after driving with a black box installed for over a year – saving hundreds of pounds.

A telematics insurance policy measures motorists’ mileage, the time they drive, and how they drive. They are then penalised for sudden braking or cornering via a black box installed in the dashboard of the car.

The concept is simple: by encouraging careful driving, some motorists will see their premiums fall, while those who do not drive as safely will see the cost increase.

For instance, motorists with insurethebox buy an initial 6,000 miles of cover and drivers will be assessed on their performance according to five different criteria.

Drivers who exhibit careful behaviour will be rewarded with up to 100 bonus miles per month.

Last year, the Telegraph revealed that the average cost of insuring a car for young drivers had soared to a record high of £3,688 a year.

The AA launched its own telematics insurance two months ago and says it is too soon to see any benefits.

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