Telematics-based insurer slashes premiums after successful launch
One year on from its launch, telematics-based on-line motor insurer insurethebox claims two thirds of its insurance renewals have seen significant reductions.
While renewal quotes have risen generally, 22% of insurethebox customers saw quotes drop, by £800 and more in some cases. Via a tracker placed behind the dashboard, the insurer monitors policyholders’ driving and assesses their performance by certain criteria.
Customers buy 6,000 of cover and can go online to check their progress, how many extra miles they have earned and how they could have earned more. Careful drivers are rewarded with 100 extra miles while those who have been more reckless see premiums rise.
Mike Brockman, CEO of insurethebox, says the method is effective: “Most of our policyholders have risen to the challenge of telematics and are making a big effort to drive safely, and those who do so are finding that their insurance is getting cheaper.
“Our experience has absolutely justified our confidence in the concept. There are, of course, many other benefits to society such as safer roads and lower CO2 emissions as people drive more sensibly.
Fair
Mr Brockman adds that his company’s methodology means that good motorists aren’t subsidising less responsible road users.
“We are empowering car owners to control their costs – as long as they buy into our approach,” he says.
20 year old Skoda driver Kieran Wilson gave insurethebox a go after receiving an attractive quote.
“Having earned extra miles throughout the year, it was an added bonus when insurethebox came in with a renewal quote that saved me a further £700,” he explains.
“The cost saving to me is fantastic, as working as an apprentice for a mechanics firm finances are always a concern.”
With 40,000 policyholders, insurethebox claims to be the UK’s largest telematics-based insurer.
See also:
No comments yet
