The number of uninsured motorists has been rising and BIBA, working with the Motor Insurance Bureau seeks to reduce this trend as the cost of compensation and damages resulting from accidents caused by uninsured drivers is paid for from the premiums of law abiding motorists.
The world of motor insurance is extremely complex, so always talk to an insurance broker. As an independent expert, they will help you decide what sort of cover you need, and choose the right insurer to meet your requirements at the most reasonable cost.
An insurance broker will put your interests first. They work for you, not the insurance company. So you can be sure of impartial advice at all times, a choice of the products available, and a helping hand.
In its 2016 Future Mission document, the FCA acknowledged the role of technology in reducing
some consumers’ car insurance premiums through telematics, demonstrating how innovation
meets needs.
Research conducted by BIBA in late 2016 shows an increase in telematics based polices to more than 750,000 live polices.
BIBA conducts annual research into the number of telematics policies live in the UK and in 2016 the number exceeded three quarters of a million for the first time.
The BIBA survey includes information from the leading telematics brands in the UK to determine the number of live policies which, on a like for like basis1, shows an increase of nearly 25% on the 2015 figure.
Graeme Trudgill, Executive Director at BIBA, said: “It is encouraging to see such a big take up of telematics policies. Motor insurance premiums for young drivers are higher than for other drivers because statistically they have more accidents, but the safety advantages of telematics help to reduce users’ premiums.”
Mike Ketteringham, CEO of BIBA member ingenie, said: “Telematics insurance makes a huge difference to the safety of a young driver, particularly when coupled with effective feedback and education. The soaring number of black box policies is great news and shows we’ve reached a tipping point where young drivers and their families appreciate that telematics is a better option financially, and are willing to work alongside us to reduce crashes.”
These types of policies can offer savings of up to 25% for careful drivers. Data provided by the ‘black-box’ technology builds a personalised risk profile based on an individual’s actual driving. Ongoing monitoring of driving behaviours encourages better, safer road use. Research from insurance provider ingenie shows that telematics-based feedback can halve a driver’s risk of crashing over their first policy year.
In addition, BIBA member Marmalade, specialists in telematics insurance for young drivers, has seen exceptionally strong safety results. Studies show that 1 in 5 young drivers have an accident within the first 6 months of passing their test, yet with Marmalade that figure significantly improves to only 1 in 16, making their young drivers three times safer2.
They require an innovative approach to insurance protection, covering the traditional elements of motor insurance, and also product liability while in full autonomous mode to ensure that those involved in collisions are compensated promptly and fairly. BIBA has been in close dialogue with the Department for Transport and formed a sub-committee of its Motor Insurance Panel to consider
issues surrounding insurance for autonomous vehicles.
Andrew Jones MP, Transport Minister
Over the next few years advances in driverless vehicle technology will have a profound effect on transport, with the potential to deliver even safer roads and improve people’s journeys.
The Government is determined that Britain leads the way globally in embracing its safe development and have consulted with the
insurance industry and the public so that these vehicles can be insured properly. We look forward
to working with BIBA to help deliver a new motor insurance model for automated vehicles.”
The biggest change that brokers will need to make is to start collecting driver licence numbers when quoting. Undergoing a licence check with MyLicence is not compulsory for policyholders, however some insurers may choose not to offer cover if a driving licence number is not supplied as they may suspect fraud.
BIBA produces a quarterly magazine, The Broker, which aims to give members of BIBA and relevant stakeholders information and insight about BIBA membership, initiatives and campaigns.
Helping your constituency with insurance matters
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Members of the Armed Forces have particular insurance needs. BIBA members making a commitment under the Covenant and which help meet these needs can be found here
