Telematics policies grow in popularity by 40%
The British Insurance Brokers' Association has reported a 40% rise in the number of telematics policies. The news arrives on the same day we hear rumblings about a potential rise in Insurance Premium Tax - yes, the same IPT that was raised by 3.5% back in November 2015.
Update: IPT has risen by 0.5% in the new budget - not as bad as the rumoured 3.5% but still a bit rubbish.
Thumbs up for the rise of telematics
It's happening. Well - it's actually happened. Telematics is now a mainstream choice for young drivers. With the number of drivers insuring with a black box rising by 40% in the last year overall, older drivers are clearly beginning to realise they can benefit too.
When we were thinking up ingenie, we were faced with quite a few raised eyebrows. Nearly 5 years after launching the brand, I think those have turned into raised glasses. We were right: telematics is the best way to get more affordable insurance. All you have to do is drive properly - so simple.
From the latest figures, ingenie now has around a 10% share of the telematics market, and we've reduced the risk of crashing in our growing community by 40% compared with national average. We're incredibly proud of those numbers.
Thumbs down to the rumoured IPT raise
Young drivers face the biggest premiums. That means they're also taxed the most on their policies. Just 4 months after the government put Insurance Premium Tax up from 6% to 9.5%, I'm hearing a lot of whispers about another bump.
Although the Treasury has declined to comment, in insurance land the suggestion is a rise to 12.5% - meaning IPT will have doubled in the last 6 months.
It's fertile ground for scaping in more cash because insurance premiums have gradually reduced in cost over the last few years. Unfortunately, adding an average of £37 to each policy (and much more for young drivers) is just going to shoot that right back up. Not helpful.
The BBC says a rise in fuel tax was also considered but Conservative MPs were curiously reluctant about that idea.
Read more about the IPT rise in November 2015 and what it meant for young drivers.
By Richard King
As founder of ingenie, Richard is passionate about helping young drivers get on the road safely and affordably. He appears on TV campaigning to improve young driver safety.