From Yahoo Finance: 2025-06-27 11:22:00

The RAC is launching new telematics insurance options in the UK targeting younger and older customers. GlobalData’s survey shows high customer satisfaction with telematics policies, with 77.4% satisfied with premium savings. Pay-per-mile policies also received positive feedback, with 89.2% likely to recommend them.

While pay-as-you-go policies had slightly lower satisfaction rates, both telematics and PAYG policies were well-received by customers globally. The data suggests a higher likelihood of policy renewal for those who have telematics or PAYG policies, despite initial skepticism about sharing personal data or having driving judged.

Although currently the 14th-biggest motor insurer in the UK, the RAC’s strategic targeting of younger and older demographics with tailored telematics policies seems wise. These age groups face higher risks and premiums, making them more receptive to personalized insurance options. If marketed effectively, the RAC could see strong retention and growth through word of mouth.

Read more: RAC wise to target younger and older motor insurance customers with telematics policies