From the Wires
UK Car Insurer ingenie Says EU Ruling is a Step Towards Individually Assessed Insurance Premiums
By: Marketwired .
Dec. 18, 2012 01:55 AM
LONDON, UNITED KINGDOM -- (Marketwire) -- 12/18/12 -- According to ingenie, a black box car insurance brand for 17-25 year olds, the EU gender ruling is set to highlight the benefits of insuring young people based on how they drive. The change in the law comes into force from 21st December 2012.
Many of the major players in the UK car insurance industry have reacted strongly against the ruling which will mean that insurers can no longer take gender into account when calculating the price of car insurance. The British Insurance Brokers Association (BIBA) estimates that as a result of the ruling, premiums for young women will rise by up to 25%.
However, Richard King, founder and CEO of ingenie said: "ingenie sees the ruling as a step closer to a future where all young drivers are treated as individuals, with premiums based on how well they personally drive. As a specialist brand for young drivers, we know that teenage drivers in particular are often offered expensive quotes - but this isn't always fair. Our experience is that many of our customers actually drive really well. With BIBA estimating that black box insurance can be up to 25% cheaper than traditional insurance, we hope that young female drivers in particular see black box insurance as a fairer alternative - with their premium based on their individual driving style."
ingenie fits the box out of sight in the car to assess how it is being driven. Uniquely, driver feedback is available via Twitter-style messages on the ingenie mobile app as well as online.
Key areas of driving are assessed including speed, acceleration, braking and cornering. The driver's policy is then reviewed every 3 months and the best drivers could receive a discount of up to 10 per cent on their insurance in the first year, meaning that if they drive well, they pay less for their insurance.
Mark Cliff, Managing Director at Ageas Insurance Ltd, one of ingenie's underwriters, said: "The EU ban on gender pricing will impact customers in different ways, but some of those most impacted will be young female drivers who can expect to see a spike in their insurance premiums. ingenie's black box technology is an innovative way of linking premiums to behaviour as it rewards young people for driving safely. For those renewing their motor insurance after the 21st December, it's an option worth considering to help keep costs down."
Richard King added: "Our view is that this EU ruling is only the first step towards car insurance premiums individually tailored for the young driver. Black box technology will transform the way insurers assess young driver insurance premiums, so that in time, the cost of insurance will depend on how well each individual drives - not on a group of drivers you've never met."
ingenie's infographic highlights the impact of the EU gender ruling on young drivers: http://www.ingenie.com/blog/2012/11/eu-gender-ruling-infographic.
ingenie provides car insurance for 17-25 year olds and brings together a community of better drivers. A black box is fitted out-of-sight in the car to assess individual driving styles. Regular driving feedback is available via ingenie's mobile app or online. Driving trends and patterns are assessed rather than isolated incidents - policies are reviewed every three months with discounts applied to the best drivers in the community. Find out more: http://www.ingenie.com/how-it-works.
ingenie is backed and supported by footballer turned broadcaster Gary Lineker and Williams F1 who have assisted in the development of ingenie's telematics technology as well as supporting our road safety initiatives.
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