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Teenage drivers could save more than £1000 on car insurance by switching to a telematics policy

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More than three quarters (78%) of drivers aged between 17 and 20 could save money by swapping to a telematics policy instead of a regular car insurance policy, according to new analysis from comparethemarket.com.

These drivers could save an average of £1,137 by choosing a telematics policy. 

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Telematics policies also remain cheaper for two-thirds (69%) of quotes for drivers aged between 21 and 24 years old. The average savings for choosing a telematics premium over a regular policy is £388 for this age group.

The proportion of quotes where telematics premiums are cheaper does decline as drivers get older. Nevertheless, telematics premiums are still cheaper for 40% of drivers aged between 25 and 29, who can typically save £264 by choosing a telematics policy.

Despite the savings available, a separate study commissioned by comparethemarket.com reveals more than half (59%) of drivers under the age of 21 are unlikely to choose a telematics policy. This increases to 70% of drivers aged 21-24.

The research reveals that privacy concerns is the main reason young drivers don’t pick telematics policies. Four in ten (40%) drivers aged 17-20 are not comfortable sharing their driving data with insurers. This rises to 55% of drivers aged 21-24.

58% of motorists aged under 21 do believe that telematics policies make driving more affordable.  Drivers can use comparethemarket.com’s young drivers tool to check if they could be paying too much for their insurance based on their age, location, and the value of their car.

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Alex Hasty, director at comparethemarket.com, comments: “As the cost of driving increases with higher fuel and insurance costs, young drivers may wish to consider swapping to a telematics policy, with potential savings for 17-20-year-olds drivers reaching £1,137 on average.

“These policies are usually aimed at young people and students which is why the policies can be cheaper for what is considered a higher risk age group. The idea is to encourage safe driving, which could also help younger drivers get more affordable car insurance.

“Telematics can also provide the same benefits to other motorists who might be classed as high risk, including elderly drivers or drivers with convictions.

“Telematics policies can offer many benefits, including a discount on your premium for sensible driving, a smoother claims process after an incident, and GPS technology that can be used by emergency services to find your car.

“However, if you’re considered an unsafe driver, you may face higher premiums when you come to renew your insurance and, if your driving is considered dangerous, your insurer may cancel your policy.”

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Average Premium for a Telematics Policy (August 21 – February 22)

AgeAverage Telematics Premium
17-20£1,811
21-24£1,275
25-29£1,056
30-39£904
40-49£807
50-64£650
65-79£555
80+£977
Average£1,091


Percentage of enquiries where telematics is cheaper (August 21 – February 22)

AgeNon-Telematics CheaperTelematics Cheaper
17-2022%78%
21-2430%69%
25-2959%40%
30-3969%30%
40-4976%23%
50-6485%14%
65-7995%4%
80+98%1%
Average57%42%

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