Over a third of UK motorists are unsure of adopting telematics based motor insurance, according to a survey of 1,500 drivers by YouGov and Redtail Telematics.
Nearly 30% of those surveyed stated that they could think of no reasons to change from traditional motor insurance policies, citing the cost of installing the telematics device as a factor (42%), while 38% of respondents believing that using telematics can potentially increase the cost of motor insurance.
Go deeper with GlobalData
However, in a recent survey by the British Insurance Brokers’ Association it was revealed that there are nearly one million telematics policies live in the UK – an increase by almost 30% on the 2016 figure.
Obtaining cheaper car insurance, being incentivised financially to drive safely and having improved awareness of their driving style were considered three of the incentives for choosing telematics-based insurance policies by those surveyed.
Commenting on the Redtail Telematics/YouGov research, Redtail Telematics chief executive officer Colin Smithers said: “The benefits of using telematics for motor insurance purposes are widely documented and are reinforced by the recent BIBA figures highlighting continued growth and popularity of telematics-based motor insurance amongst consumers. However, as our research highlights, there is still a process of education that needs to be undertaken by the insurance industry to convince the 30% of those surveyed who see no incentive to switch to using telematics.”
From September last year the TomTom telematics division is being prepared for the possibility of a sale, in a bid to raise cash and to focus on its primary map and navigation software divisions. This week tyre manufacturer Bridgestone have expressed concrete interest in purchasing the division in a £910m (€800m) deal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFocusing on fleet connectivity and management, the TomTom telematics division has been valued at €700m (£624m). Stock prices in the company rose by 17% to €7.25 on the news of the division’s potential sale.
