Recently BBC Watchdog started looking into car insurance firms who charge their existing customers a higher premium at renewal.
However Motaquote, the insurance broker behind the iKube and Fair Pay black box insurance brands, has stated that they may reward loyal customers with cheaper premiums at renewal.
The two black box car insurance products that Motaquote operates work in a radically different way to traditional car insurance.
iKube is a young full licence and learner driver insurance scheme that offers its customers affordable premiums based on when they drive. As long as the learner agrees not to drive between 11pm - 5am they could enjoy discounted car insurance policies. Unlike some other learner driver insurance specialists iKube will not increase the premium or cancel the policy after the learner passes their test.
In addition to this, iKube can offer significant additional discounts off a young driver’s renewal premium relating to their driving behaviour. The product also gives any No Claims Discount earned. iKube even state that they can remove the time restriction element to the best segment of young drivers who have driven flawlessly. In fact 75% existing customers get a substantial behavioural based renewal quote discount – rewarding customer loyalty.
Fair Pay is also a specialist black box or ‘telematics car insurance’ policy that can offer affordable premiums as well as reward customers at renewal.
Unlike iKube, Fair Pay does not restrict the time of day the motorist drives. Instead it gives a set number of mileage points up front on the assumption that the policyholder is a good driver.
Fair Pay is radically different to other black box products in the market at the moment as it allows the motorist to monitor their driving by using an in-car TomTom navigation device - designed to give real-time feedback.
By using this technology the driver is able to adapt their driving behaviour on a day-to-day basis. The product essentially allows the driver to develop their style of driving which in turn may lead to a drop in the cost of their car insurance when it comes round to renewal. The renewal premium is based on how well the individual has driven – the better they drive the cheaper the premium that will be offered at renewal.
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).