Monitored driving can knock thousands off motor insurance costs

Young people who agree to allow their driving to be monitored remotely as a precondition of their insurance policy can end up saving thousands of euro a year on the cost of cover, according to new research from price comparison and switching website Bonkers.ie.However, those who don’t want telematics to be part of their motor policy can end up paying close to €4,000 for annual cover.Telematics car insurance uses smart technology to track a driver’s habits through a small device or smartphone app installed in the vehicle.It monitors metrics such as speed, braking, acceleration and cornering, as well as time spent on the road.READ MOREThe information is shared with the insurer, and safe drivers are then rewarded with lower premiums. The system can be particularly useful for young or first-time drivers, or those new to Ireland, who are often hit with penal premiums.Bonkers.ie sought quotes from a range of providers including AIG, Aviva and Zurich under a number of conditions and found that a 20-year-old driver with a full licence was quoted just €570 for fully comprehensive telematics cover.When there was no telematics cover, the price of the standard policy jumped to almost €3,900.[ What’s driving up the cost of car insurance in Ireland?Opens in new window ]Even learner drivers were able to find competitive cover, with a 23-year-old driver with three penalty points quoted €968 for third-party, fire and theft telematics cover, compared with over €2,800 for a standard policy.“It’s very possible for younger drivers to get on the road for under €1,000 by choosing a telematics policy, especially if they have their full licence,” said Daragh Cassidy from the price comparison site.He noted that telematics could also benefit drivers who are new to Ireland and don’t have a long record of driving in the country that insurance providers can draw on when deciding on the costs to impose on individual motorists. Cassidy said that the Bonkers research highlighted how new drivers “shouldn’t automatically rule out getting fully comprehensive cover because they assume it’ll be too expensive. In some cases, a fully comprehensive telematics policy can cost less than a conventional third-party, fire and theft policy.”He did note, however, that the excesses on some telematics policies can be higher, and he stressed the need to “understand any conditions attached to the cover, including how their driving is monitored and whether there are limits to when and how much they can drive”. “I’d also encourage parents of young drivers to take note of our findings,” Cassidy said.“Many first-time drivers will rely on the ‘bank of mum and dad’ to help them get on the road. So for parents worried about facing a four-figure insurance bill for their son or daughter, telematics is certainly worth investigating.”