Insurance premiums for young drivers are generally high, with average costs for new drivers aged 18 being around £3000, (or £2500 with a black box fitted) according to a Daily Telegraph feature in August this year. Despite the high risks associated with young drivers, insurers and brokers all want that first timer business, because the chances are also high that many new customers will stay with their existing insurer as they get older.
There’s strong competition within the sector for new drivers and Nextbase, today announced a partnership with MyFirstUK Insurance to offer young drivers a substantial saving, compared with traditional insurance premiums.
Through a partnership with young driver insurance specialists MyFirstUK, the exclusive package will see young motorists receive a discount of up to 30% on their premium when they install a Nextbase Dash Cam in their vehicle.
With premiums often exceeding £2,000 for drivers under the age of 25, many young motorists are forced to opt for telematics-based insurance premiums to help bring down costs. However, new research shows that telematics policies are unpopular, with a resounding 85% of those with black box insurance stating that they’d opt for an alternative solution to save money, if one existed. This in stark contrast to overwhelming positivity towards Dash Cams, the sector becoming the fastest growing of its size within the whole of consumer electronics over the last three years.
Richard Browning, director at Nextbase, commented,
“Little is being done to combat the restrictions that young motorists face when getting started driving. As Dash Cams become increasingly popular and useful tools in protecting drivers, so too do policies that reflect the developing market. We are extremely proud to create something truly unique – the first package of its kind for young road users.”
The Nextbase / MyFirstUK Dash Cam policy is designed to combat the major barrier for young drivers of high insurance costs, largely due to the recent increase in insurance premium tax and the growth of fraudulent claims. There are now estimated to be almost £400 million worth of ‘cash for crash’ schemes on UK roads each year, adding up to £50 to every insurance policy.
The camera system is fitted by Halfords and the driver gets to keep the dashcam too – the sheer convenience of the set-up is something that will probably appeal to many new drivers, and perhaps parents or family members who are helping to fund the young driver by buying the car and insuring it.
Many UK insurers now accept Dash Cam footage as part of an insurance claim. As well as capturing indisputable evidence to prove non-fault in the event of an incident, Dash Cams remove the need for driving habits to be monitored via a black box, as the camera is always on.
Although telematics policies are based on the premise of ensuring young drivers are behaving in a safe manner on the roads, many restrictions accompany these premiums such as curfews on driving at night or limitations at peak times.
These restrictions can often prompt many under 25s to give up on car ownership and spend 2K a year on Uber rides instead, or join car-sharing schemes in major cities. As driverless tech continues to develop, the motor insurance sector risks losing an entire generation, who can see better ways to spend £3000-£4000 per year.