ingenie launches Young Driver Report
More than 200 million miles of data
We're very excited to announce that the ingenie Young Driver Report has now launched.
The report is a summary of our findings from more than 200 million miles of telematics data, supporting the call for government to give new young drivers an Insurance Premium Tax (IPT) exemption if they choose a telematics policy.
As the report shows, this move would help more young drivers get on the road, and potentially reduce their risk of crashing from 1 in 5 to 1 in 8.
What is IPT?
IPT is a 6% tax on all car insurance policies, which adds around £100 to the cost. We are recommending a zero-tax rating over 7 years for 17 to 25 year old drivers choosing a telematics policy.
ingenie's involvement in road safety
ingenie has been involved with the Department for Transport's investigation of telematics, presenting its potential for reducing the number of crashes young drivers have and addressing the financial strain of insurance on under-25s.
Encouraging more young drivers to choose telematics would have a huge impact on both, as our insurance partner Ageas estimates 2500 crashes avoided every year and £500 million saved through reduced costs for the NHS and other care services.
Through our telematics proposition, we have found an effective way of engaging with young drivers based on popular communications channels, which has had a significant impact on driver behaviour. Further encouraging the take up of telematics based insurance will no doubt make a real difference to road safety.
Founder and CEO
Zero-rate IPT on telematics policies for under-25s would:
- • Encourage more young drivers to choose telematics
- • Improve road safety with regular driver support and lower crash risk
- • Lower insurance costs for young drivers
- • Save the economy £500 million
Crashes involving new drivers under 25 cut 40 percent by use of telematics insurance
- Black box policyholders halve crash risk in first policy year
- ingenie’s young drivers 40% safer six months after passing test than national average
- Telematics tax cut could prevent 28,749 crashes annually
- Government urged to do more to encourage uptake of telematics for novice drivers
November 2014: 40 percent of new driver crashes involving 17 to 25-year-old drivers could be avoided through mass market adoption of black box insurance, according to a report published today by young driver insurer ingenie. This amounts to the prevention of 28,749 crashes on UK roads per year.
The ingenie Young Driver Report presents compelling evidence that telematics insurance policies that measure how young people drive and provide feedback to help them become safer, can significantly reduce crash frequency among this high-risk group.
Based on this evidence, ingenie has joined forces with its insurance partner Ageas UK to call for an Insurance Premium Tax (IPT) exemption on telematics polices taken out by young drivers. This would allow insurers to reduce premiums and stimulate demand while the market matures.
Calculations show that implementing a zero IPT rate for telematics insurance could increase take-up by as many as 245,000 additional policies, resulting in an estimated 28,749 fewer crashes annually by year seven, and a saving to the UK economy of £500 million. When these findings were presented to transport minister Robert Goodwill MP at a recent meeting in the House of Lords, he acknowledged that “telematics was delivering for young drivers” and pledged further research into its impact.
The ingenie report also presents telematics data gathered over 200,000,000 miles to paint a clear picture of how, when and where young people drive; the risk they pose to themselves and other road users; and their receptiveness to behaviour change.
- Road crashes are still the biggest accidental killer of young people
- Young drivers are involved in 20% of Killed and Seriously Injured crashes
- Five 17 to 24-year-olds lose their lives on British roads every week
The data suggests that lives could be saved through wider adoption of black box insurance. Indeed, ingenie’s data reveals that compared with the national average of 1 in 5 young drivers crashing in the first six months after passing their test, just 1 in 8 of those taking out a telematics insurance policy will have a crash during that period – that’s a 40% reduction in risk. While ingenie wants government to encourage the adoption of telematics insurance among young people, crucially the company wants it to remain an opt-in product, as young drivers must choose to take responsibility for being safer drivers.
The fact that 70% of ingenie policyholders earn a discount for safe driving, while 93% achieve a no claims discount after their first year, irrespective of age or gender, goes even further to show that telematics insurance results in a long-term improvement in driving behaviour.
Richard King, ingenie’s founder and CEO, said: “Every year, more than 490,000 newly qualified drivers take to the road on their own for the first time, and it’s a sobering thought that without telematics one in five of them will go on to have a crash within just six months of passing their test".