Premium prices for young drivers in the UK are driving them towards telematics policies, with over half of 18-25-year-olds opting for them. The youngest group (17-19-year-olds) pay 83% more for traditional cover than telematics. GlobalData’s survey shows 68% of young adults have telematics policies, compared to 48.3% of older adults.

UK consumers with telematics policies are overwhelmingly satisfied with the financial savings they offer. GlobalData’s survey found 62.5% of UK consumers with telematics policies were satisfied with their savings. As costs rise, telematics policies are becoming a necessity, with traditional motor insurance policies being significantly more expensive for younger drivers.

The trend of younger drivers opting for telematics policies is likely to continue, given the significant cost difference compared to traditional cover. Insurers should focus on offering easy-to-use policies accessible via mobile apps to cater to this growing trend. Younger drivers are being pushed towards telematics policies due to the vast difference in premiums.

Read more at Yahoo Finance: Younger drivers forced into telematics by vast difference in premiums