Trakm8, a pioneering connected data insurtech with a proven track record of delivering market-leading connected insurance solutions, is showcasing the benefits of usage-based insurance (UBI) and Pay-As-You-Drive (PAYD) models in response to new data from Go Compare. This report reveals a strong link between the miles drivers cover and the premiums they pay, highlighting how connected “telematics”-powered solutions can drive more sustainable and cost-effective insurance for drivers.
According to Go Compare, motorists who drive up to 6,000 miles a year pay an average of £444 for their insurance premiums—nearly 10% less than those who drive more miles annually. This highlights how mileage-based insurance offerings such as PAYD and UBI can offer significant savings to drivers who drive less or more carefully, while also promoting responsible driving habits and reducing emissions.
The data also highlights significant regional differences, with London drivers facing the highest average annual premiums at £598—74% more than drivers in Wales, where the median cost is £343. Meanwhile, comprehensive car insurance policies, offering the highest level of cover, cost only £10 more than third-party fire and theft policies.
Adam Gooch, Managing Director of Insurance at Trakm8, commented, “This data clearly illustrates how usage-based insurance can help drivers save money, particularly as the cost of living continues to rise. At Trakm8, our advanced connected solutions enable insurers to offer fairer, more personalised policies that reward drivers for lower mileage and safer driving habits. By harnessing connected data and AI-powered insights, insurers can reduce risk and support a greener, more sustainable future.”
Trakm8’s connected solutions provide insurers with real-time data on driving behaviours and mileage, empowering them to tailor premiums more accurately. This not only helps drivers save on insurance costs but also encourages eco-friendly habits by reducing unnecessary mileage—delivering a win-win for motorists and the environment.
With average car insurance costs now at their lowest level since early 2023, the time is ripe for insurers to embrace innovative connected insurance models. Trakm8’s integrated AI-driven portal and market-leading driver app give them the tools to transform data into actionable insights, deliver fairer pricing, and support the next generation of intelligent, sustainable insurance solutions.
For more information on Trakm8, please visit: www.trakm8.com
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