Teenage drivers could save more than £1,000 through telematics-based insurance

More than three-quarters of drivers aged between 17 and 20 could drive down the cost of their insurance by switching to a telematics-based policy, a new survey has found.

According to new analysis by the insurance comparison site comparethemarket, drivers could save an average of £1,137 by choosing a telematics policy over conventional insurance.

In addition, telematics policies also remain cheaper for two-thirds of quotes for drivers aged between 21 and 24 years old, with average savings coming in at £388 for this age group. The proportion of quotes made cheaper by telematics does decline as the age of drivers increases but, even so, this type of insurance is still cheaper for 40 per cent of drivers aged between 25 and 29. This age group can save an average of £264.

However, despite the savings on offer, a separate study of 2,999 UK drivers commissioned by comparethemarket found that nearly half of drivers aged under 21 are unlikely to choose a telematics-based policy. This increases to 70 per cent of drivers aged 21-24.

One of the main reasons why younger drivers don’t choose telematics-based policies is security, with four in ten of the drivers aged between 17 and 20 saying that they were not comfortable sharing driving data with insurers.

Alex Hasty, director at comparethemarket.com, comments: “As the cost of driving increases with higher fuel and insurance costs, young drivers may wish to consider swapping to a telematics policy, with potential savings for 17-20-year-olds drivers reaching £1,137 on average. These policies are usually aimed at young people and students which is why the policies can be cheaper for what is considered a higher risk age group.

“The idea is to encourage safe driving, which could also help younger drivers get more affordable car insurance. Telematics can also provide the same benefits to other motorists who might be classed as high risk, including elderly drivers or drivers with convictions.”