BLACK boxes otherwise know as telematics reduce car insurance claims by up to £650, reveals new research.
Car insurance prices regularly climb in the UK and there are multiple factors which impact the overall final cost. New data from ITS – Telematics Solutions reveals that telematics technology reduces claims on average by 22 per cent. According to the research, a total of over £1.79billion could be saved each year by adopting black boxes technology. The typical cost of a motor insurance claim has risen to £2,936, the highest level on record, according to figures from the Association of British Insurers (ABI).
The total amount paid on all motor claims in 2017/18 being £8.1billion with 32.9m drivers in the UK, this means a cost per driver of £246.
The research suggests that despite the continued fall in road traffic casualties claim volumes remain significantly higher than expected.
Other types of claims such as ‘crash for cash’, and suspicious whiplash-associated injury claims reported to the Compensation Recovery Unit, have been on the rise.
The benefits of telematics or black box cover are well publicised as a means to slash the cost of insurance cover.
Data from ITS also revealed how they can help to thwart fraudulent insurance claims.
A recent case took place in Oldham last year and included nine personal injury claims and a reserve held for £55,000, which immediately sparked suspicion upon analysis of the data.
ITS was able to evaluate the alleged incident versus data collected by the device around that time, utilising their data HUB and platform, to provide a tailored, detailed report to the insurer of what likely transpired.
Upon reviewing the driving data, it was established that no crash message had ever been recorded by the device.
After deeper inspection, it was determined that the policyholder’s movements around the time of the alleged incident were also unusual and extremely suspicious.
The Vauxhall Meriva driver had been driving up and down a country lane over and over again, reversing around corners and spending a lot of time stationary with the ignition still switched on.
After these findings were discovered, the ITS specialist decided to pull the policyholder’s entire driving data to see whether they had ever visited or driven past the reported incident location – which they had not.
All of these findings were presented to the insurer, and the £55,000 claim that was presented has since been repudiated on all counts due to it being completely fraudulent.