By Daniel Hunter

Young motorists are reluctant to accept the use of telematics - black box technology — to monitor their driving and set car insurance premiums.

Research from Deloitte, the business advisory firm, reveals 58% of 18-24 year olds are unwilling to use the technology. While some would consider telematics if their car insurance premiums were discounted, about a third (35%) of 18-24 year old car insurance buyers would not accept telematics at any discount.

Almost all (92%) of 18-24 year old olds opposed cite intrusiveness as a reason for rejecting the technology.

“Telematics has been put forward as a solution for the high costs young drivers have to pay for car insurance. In theory it is ideal for careful drivers within traditionally high-premium demographic groups and could enable them to benefit from lower premiums based on their driving," James Rakow, insurance partner at Deloitte, said.

“However, Deloitte’s analysis indicates substantial resistance to the use of telematics in general, and particularly among the very group that the technology could benefit the most. At a time when many insurers are working hard to build a telematics solution, this gives the industry some interesting feedback about how readily their products will be received by potential customers.

“Telematics accounts for about 1% of the car insurance market. To make it more popular, insurers will have to identify carefully their target audiences such as parents who care about their children’s driving and who often pay the insurance premiums."

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