More Than wants to help motorists drive in an eco-friendly way
Soaring fuel costs 'will change car insurance'
Tuesday, 24 Jun 2008 14:51
Rising fuel prices will push more people into telematics-based insurance products, More Than has predicted.
Insurance policies that reward careful drivers with lower bills could start rising in popularity as higher fuel costs force drivers to change their driving behaviour, the insurer forecasts.
More Than has recently launched Green Wheels, a policy that allows drivers to access reports analysing their driving style on 'eco-driving' criteria.
Royal & SunAlliance-owned More Than is now the only insurer that offers a telematics-based service, after Norwich Union dropped its Pay As You Drive policy following a lower-than expected take up.
Drivers agree to have a box fitted that monitors their driving, allowing lower premiums for motorists who keep within agreed mileage limits, or drive within certain hours. More Than offers Drive Time, a policy for young people that remains low provided they do not drive late at night.
Motorists who drive without over-revving their engines, accelerating or braking sharply, or going too fast, are given a high eco-rating of A. Drivers more inclined to a boy racer style will receive a G rating.
The insurer added it has no plans to use data from the device to lower premiums for careful drivers – but the potential for such a policy is there.
At the moment, the 'green box' will simply help drivers keep their fuel costs down, More Th>n said.
More Than's product director Dowshan Humzah said: "Many people simply cannot afford to be without their vehicles, but neither can they afford to sustain the cost of motoring. Instead, people will soon be looking for other ways to reduce costs, and the role insurance plays in this is important."