The cost of motor insurance - Transport Committee Contents

Written evidence from Nigel Lacy, Young Marmalade (CMI 35)

I am aware that submissions for evidence has now closed but I would like to make the Committee aware of the work that we have done at Young Marmalade in helping to reduce the cost of insurance, particularly for young drivers—amongst the hardest hit by the recent steep rise in premiums.

We help to manage the risk for the insurance company and we achieve that by having an influence on the car that is driven by our customers. At Young Marmalade we sell the car and the insurance as a package and as we are controlling the risk for the insurance company, we are able to reduce the risks and hence the premiums. We are using sophisticated, modern in car telematics to monitor acceleration, braking, cornering and speeds to help build a profile of the driver.

We have already proved that by putting young drivers in a newer cars with additional training, they have significantly fewer accidents—this was reported in an Early Day Motion in the House back in 2007.

We have now taken this one stage further by assessing drivers via a drivers' log book scheme which takes them on as learner drivers—our Provisional Marmalade product insures them to practise in a family car. After they pass their driving test we seek a further assessment with Police trained observors linked to the Inititute of Advanced Motorists and then the technology alerts us to how the car is being driven and we link the premiums to that. The advantage is that the premiums are approximately 50% of the general market rates and there are no other restrictions on driving.

This whole process is also linked to the sale of a new or nearly new car, the funding of which makes the whole scheme affordable.

Intelligent Insurance allows the driver to assess the areas of his or her driving that affects their risk on the road, such as having a car full of friends or feeling off colour and how this affects their driving and safety on the road. Other benefits include early indication of a collision, even to the extent of summoning emergency services if required, simply by being alerted to sudden decelleration or activation of airbags. Recovery in the event of a theft is simple—the car can be switched off remotely.

All of these measures have a massive impact on reducing insurance costs.

We are also taking this into the classroom through our 6th Gear programme where we stimulate discussions about all aspects of motoring to the next generation of motorists.

We hope this is of interest to the Transport Select Committee

Young Marmalade is a member of the Parliamentary Advisory Council for Transport Safety.

January 2011

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