Supporting new and novice drivers

Telematics Policies

Many of our motor insurance members offer telematics products, and as a sector, we are supportive of any efforts to improve road safety and reduce costs for young drivers. These types of policies tend to monitor driving and may provide premium discounts for safe driving. However, policies will differ, so it is important that customers understand the policy terms to find one that suits their needs. You can find further information in our FAQs.

The main reason car insurance for young drivers is so expensive is because statistics show that young drivers are far more likely to be involved in accidents than drivers aged 25 and older. Drivers aged 17-24 only make up 7 per cent of UK license holders and drive fewer miles than the average but are involved in 24 per cent of all fatal collisions. Therefore, young drivers are more at risk and more likely to make a claim, and when they do, the claims tend to be larger.

Telematics insurance policies use devices to measure how a car is being driven. For example, they will take into account speed, severity of braking and other driving characteristics to develop a driving profile of the policyholder. These policies can help cut the cost of insurance if you are a ‘safer’ driver, potentially reducing the costs for young or novice drivers.

Telematics may not be right for everyone. Please speak to your insurer if you have any questions and read your policy wordings in detail to make sure you understand how your telematics policy works.

Note that this list was last updated in February 2025 and may not be exhaustive.

ABI members offering telematics policies