It is no secret that UK households have been feeling the impact of inflation in recent weeks. Consequently, Brits are trying to save money wherever they can, including on their car insurance.
Car insurance costs Brit’s an average of £412 per year! Meanwhile, new research from Cuvva has revealed that car owners could be making huge savings with one simple switch! So, how can you cut down your car insurance to save money during inflation?
What is telematics car insurance?
Telematics car insurance is commonly known as ‘black box’ car insurance. Simply put, it is a type of car insurance policy that actively measures your driving to decide how likely you are to make an insurance claim.
Telematics car insurance measures your driving through a monitoring device or ‘black box’ placed inside your car. The device makes a note of how fast your drive, how harshly your brake and whether you are generally safe on the roads. Policies using telematics are typically offered to first-time drivers as an incentive to drive safely and reduce their premiums.
Drivers who achieve a good score from the black box are usually offered lower premiums than those who are considered to be less safe. Therefore, if you are a safe driver and want to reduce the premiums you pay, then telematics insurance could be a great choice for you.
Could telematics cut your car insurance bill by 26%?
New research from Cuvva has revealed that car owners could save up to 26% by making a simple car insurance switch. The car insurance experts claim that those who use a telematics insurance policy have much lower bills than other policyholders.
The research compared telematics policies to the policies of five other popular insurance providers. In the vast majority of cases, telematics insurance came out cheaper and saved drivers an average of 26% on car insurance premiums.
Based on a 26-year-old male from North London, the average saving provided by the telematics insurance was found to be £516.77. Furthermore, in one case the telematics insurance came out 56% cheaper than a standard insurance policy!
Unsurprisingly, the number of telematics policyholders is on the rise in the UK. Cuvva predicts that this will continue to grow and says that telematics policies should be considered by anyone who wants to cut their premiums.
A report from Research and Markets explained that the telematics market will grow at an anticipated compound annual growth rate of 18.5% until 2026. So, if you’re looking for cheaper car insurance, then now could be the time to hop on the telematics bandwagon!
Is telematics insurance the best option for you?
Despite popular belief, telematics insurance is not just for young or first-time drivers. Anyone can use the policy – and for safe drivers, it could result in excellent savings!
However, it is worth noting that the amount you can save depends entirely on your driving performance. If you’ve developed any bad driving habits over the years, then these will be picked up by the black box. As a result, some drivers could actually increase their premiums by switching to telematics insurance.
Switching to a telematics insurance policy isn’t the only way to cut down your premiums. Shopping around for a different car insurance provider could provide great savings on your car insurance! The best way to find a cheaper provider is to use a car insurance comparison website.
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About the author
Ruby is a freelance writer who enjoys writing about all things personal finance. After embarking on her own side hustle journey three years ago, Ruby is passionate about helping others to learn about the ins and outs of persona… Read More
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