insurethebox, the telematics-based on-line Motor insurer, has released its first renewal statistics since going live last summer.
They show that around two thirds of its policyholders who received renewal notices in July and August were offered cuts in their insurance premiums compared to last year. Some savings came to as much as £800 or more. This was despite a 30%* annual rise in car insurance prices generally.
The figures represent the first test of a key principle behind telematics - that by encouraging careful driving it helps people to become better insurance risks.
insurethebox policyholders buy an initial 6,000 miles of cover. A ClearBox, installed behind the dashboard, monitors their driving and assesses their performance by five different criteria. Good drivers receive up to 100 bonus miles per month. Each policyholder has their own portal where they can check their progress, how many extra miles they have earned and how they could have earned more.
"Most of our policyholders have risen to the challenge of telematics and are making a big effort to drive safely, and those who do so are finding that their insurance is getting cheaper," said insurethebox group CEO Mike Brockman. "Our experience has absolutely justified our confidence in the concept. There are, of course, many other benefits to society such as safer roads and lower CO2 emissions as people drive more sensibly."
The average renewal saving during July and August came to 22% of their previous year's premium. On the other hand, some motorists who had not driven so carefully saw their renewal premiums rise.
"If everyone received the same favourable terms on renewal, then good motorists would be subsidising less responsible road users. We are empowering car owners to control their costs - as long as they buy into our approach," said Brockman.
Kieran Wilson, 20, is an insurethebox customer from Nottingham who drives a Skoda. He was initially attracted by a quote that was the cheapest by £1500. "Having earned extra miles throughout the year, it was an added bonus when insurethebox came in with a renewal quote that saved me a further £700. The cost saving to me is fantastic, as working as an apprentice for a mechanics firm finances are always a concern," he said.
Chris McMahon, 18, from Buckinghamshire also saved about £700 on renewal. He chose insurethebox last year after receiving a competitive quote. "I now go to the portal one or two times a week to check my average mileage and speeds and the routes I have done. Having been with insurethebox for over a year I have felt the benefits of safer motoring where it matters - in the wallet," he said.
Launched in June 2010, insurethebox is the UK's largest telematics-based insurer with 40,000 policyholders.