New Driver Survey Highlights One in Four Drivers in the UK Are Struggling to Afford Car Insurance as Policy Prices Soar by an Average of 46%

Trakm8, a leading supplier of connected car data for UK insurers and brokers, has commissioned a new national driver survey* to gain insights into how drivers purchase vehicles, choose insurance, and understand telematics solutions.

The results highlighted that over a quarter of drivers (28%) admit they have struggled to get car insurance due to the rising costs making it unaffordable. The data varied across age groups with young drivers being impacted the most with over half (55%) of those under 25 struggling to afford to insure their vehicles.

The survey went on to show how rising insurance costs are causing UK drivers to cut back on other essentials with a staggering 29% admitting they were reducing the amount they are using their heating on to help pay for insurance and 1 in 10 (8%) considering reducing the number of vehicles they have in their household.

Nearly one in four drivers (22%) are considering a pay-as-you-drive (PAYD) when they renew their policy if it helps reduce the impact of the rising costs. Unsurprisingly it is young drivers who are most receptive to these policies with nearly half (49%) of under 25s likely to switch when they renew their insurance.

Tramk8 offers a unique and market-leading end-to-end telematics solution that combines an innovative PaaS platform and app that utilises big data and machine learning/AI technology with a cutting-edge UK-based manufacturing facility that delivers a range of award-winning hardware solutions. This gives insurers access to a range of big data insights including our portfolio of connected vehicle services and data analytics to give them a detailed understanding of customer driving habits and vehicle health, so they can manage policies and risk profiles on an individual basis.

 

Adam Gooch, Managing Director for Insurance at Trakm8, added, “The results of our new driver survey highlight how rising insurance costs are having a huge impact on drivers across the UK. It is concerning that one in four drivers are struggling to afford cover and it is clearly even tougher for young drivers.

“According to Pearson and Ham**, consumers are seeing motor insurance prices increasing on average by 46%, so now is the time for insurers to offer customers the opportunity to reduce these premiums in exchange for driving behaviour data.

“These policies allow drivers to benefit from much more accurate premiums and reward them for positive driving behaviour. Based on the recent FCA outlines, by offering a PAYD or UBI policy insurers can offer consumers fairer value and more accurate premiums.

“Our comprehensive end-to-end insurance telematics solutions are designed to give insurers an easy route to market to offer their customers a leading PAYD or UBI policy.”

 

For more information on Trakm8, please visit: www.trakm8.com

References

*Research carried out by Research without Barriers (RWB) – NOV 2023

** https://insurance-edge.net/2023/10/05/why-is-car-insurance-so-expensive-pearson-ham-has-some-data/