14th February 2012: Motaquote, the firm behind young driver insurance iKube and Fair Pay Insurance has today backed the initiative championed by David Cameron to find ways of halting the increase of the cost of insuring a car.
Nigel Lombard, Managing Director of Fair Pay Insurance explains: “We are one of the pioneers of the so-called ‘black boxes’ having introduced iKube for young drivers back in 2006. Last week we launched Fair Pay Insurance, in conjunction with TomTom, which is a radical new approach to calculating premiums that we believe will make access to fair car insurance much easier for drivers of all ages.”
He continues: “We’ve proved that the use of telematics can help drivers of all ages and experience benefit from preferential rates if they are willing to have their driving behaviour monitored. We firmly believe this is the way forward for the motor insurance industry if we are to deliver fair, competitive premiums to the driving public no matter their age, gender or driving experience.”
Motaquote also believes the use of telematics will play an essential role in combating spurious and exaggerated personal injury claims including whiplash, the cost of which has contributed dramatically to the steady increase in motor insurance premiums.
Lombard goes on to say: “The smart boxes fitted to an insured’s vehicle not only track the time of day they drive, the roads they’re driving on and whether they’re driving recklessly but can also record many more parameters such as the magnitude of an impact. This can help distinguish claims needing investigation from those where a high probability of whiplash, for example, exists.”
He concludes: “While an insurer may choose what behavioural data to use when setting premiums, surely the use of data to support claims investigation should be adopted across the board if it can help reduce the number of spurious claims and have a positive impact on the amount the honest driver pays for their insurance?”
Fair Pay Insurance is an insurance product offered through Motaquote in conjunction with a number of insurance providers. Established in 1991, Motaquote specialises in a wide range of personal and commercial lines insurance. Headquartered in Williamstown, South Wales it is part of nationwide group, Cullum Capital Ventures (CCV).