Using Actual Driving Data to Price Car Insurance – Young Marmalade Business in the UK
A new idea that is now a business in the UK – car insurance priced based on driving low-powered cars, plus actual driving data transmitted by chips embedded in the car’s electronics. Speed freaks and frequent drivers should pay more. The business is online here. Hat tip to the Marginal Revolution blog for flagging the topic based on a tip from a reader.
The online version of the article is here, and is pasted below:
Young Marmalade offering to provide low-cost car insurance for young drivers
17-04-2012 at 12:38
For most young people, the dream of buying and owning their very first car is a milestone that everyone wants to achieve.
But nowadays getting affordable car insurance presents a huge challenge for most young drivers looking to purchase their new vehicles.
A poll from 1,127 young drivers stated that 96% of them felt they were being priced off the road because of high costs related to motor insurance, stated by Young Marmalade in partner with the House of Commons Transport Committee.
Results surrounding high-priced car insurance for young drivers’ increases great concern as more of them are taking risks and driving without car insurance. Also another reaction to getting priced out from the market is that young drivers are turning to illegal risks. According to the Young Marmalade poll, 30% had thought of giving altered information when applying for car insurance in order to get a lower quote.
Also 57% of young drivers did not that after a car accident, car insurance firms often give personal details to car services such as: a car hire firm, garage, or solicitor in order to cash in a referral fee.
With such sky rocketing car insurance prices and unnecessary risks, many of these young drivers are now turning to Young Marmalade, the UK’s young driver specialist that offers customers with safe and new low-powered cars to decrease insurance premiums.
Young Marmalade MD Crispin Moger believes that, “Young drivers are comparing website prices and opting for the cheapest price but then chop and change depending on the next cheap offer.”
Since young people between the ages of 17 – 22 pose as high risk drivers a typical quote from a car insurance firm could start at over £5-,000 a year for comprehensive coverage. However, young male drivers pose the largest risk and can end up paying £8,000 a year.
Young Marmalade MD Crispin Moger states that they offer low-cost insurance packages because, “Young Marmalade buys many new cars and receives assistance from manufacturers, which is passed on to young drivers as Cash back. For example on the best seller Vauxhall Corsa 1.2 SXi 3 door, the Cash back on that model is £3,558 and can help pay off your first year of car insurance.”
Fortunately, when you purchase a low-powered car from Young Marmalade, the free installation of a black box can cut your insurance premiums into half. By monitoring the driving behaviour such as acceleration, braking, what time of the day the car was driven and at what speed, Young Marmalade provides affordable telematic insurance premiums.
It’s simple. The black box data is used to calculate premiums, if the car was driven well, the lower the premiums will be and vice-versa.
According to MD Crispin Moger, “A young male driver who has Intelligent Marmalade in his car will pay on average £2,601/year for comprehensive insurance, while a young woman will pay £1,642/year. If the black box detects a bad driver, initial premiums will be subjected to a £250 and £500 increase or Young Marmalade will cancel the policy.”
MD Crispin Moger added, “Since young drivers are feeling priced out by expensive car insurance quotes, with the tracking of the black box in the car, young drivers can enjoy affordable telematic insurance premiums.”
Young Marmalade assists with all car maintenance as they control the age of the car, the tracking of the black box, safety rating, and the size of the engine. By helping to maximise all young drivers’ safety, passengers and other road users decrease the risks of getting into a car accident.
At Young Marmalade they offer a secure and unique low cost insurance policy that fights against the rising costs of car insurance. Along with low car insurance premiums, Young Marmalade designed a flexible payment schedule that can fit into anyone’s budget.
With Young Marmalade securing drivers with affordable car insurance premiums, it’s helped in making many first-time drivers dreams come true. Not only can they purchase a new low powered car, but the car insurance is affordable, and helps everyone feel safe