ITS Says Mileage Based Car Insurance Demand On The Rise

New driver data from ITS Telematics Solutions, the telematics data management experts, highlights how driving habits have changed since lockdown and how these new habits reflect an increased demand for Usage Based Insurance (UBI) solutions.

The data illustrates how the UK has changed, how, and when they drive and shows the average daily mileage driven is now at 80% of the pre-lockdown level. Interestingly morning ‘rush hour’ traffic has had the most significant change as traffic volumes are a third lower (33.34%) compared to pre-pandemic levels. This data mirrors a recent survey indicating that 30 million drivers plan to cut their annual mileage* in the wake of lockdown.

The car insurance industry needs to adapt to these new trends to ensure they can meet the huge shift in driver expectations. Customers that are driving less feel they are being treated unfairly and this has caused a huge increase in drivers shopping around for better deals and has seen a surge in drivers interested in the transparency, cost savings, and flexibility that telematics provides, like the Usage Based Insurance telematics program Pay As You Drive (PAYD).

PAYD is a proven telematics insurance product that benefits customers, who use their vehicles less frequently or don’t drive far, with a lower monthly premium. This used to be a small minority of drivers but due to the pandemic this is rapidly shifting and could end up being the majority of drivers in the near future. Telematics data gives the insurance company a clear record of driving time so they can manage the policies simply and reduce risk.

Adam Gooch, Commercial Director at ITS, commented, “As our driver data illustrates car insurance needs to evolve to match driver requirements in the world post Covid-19. It is only a matter of time until data led insurance becomes a standard requirement for all car insurance policies. The industry needs to move towards an offering that is more flexible and actually rewards people for driving less. At ITS we have seen first-hand how our technology has helped to reduce the cost of policies as it provides many cost benefits and insights to insurers.”

About alastair walker 9633 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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