What is telematics?
Telematics is used widely by insurers to support safer driving and reduce accidents on the roads. For younger drivers, getting your independence on the road can be daunting. But telematics devices are increasingly being offered by insurance companies to encourage young people to drive responsibly and lower insurance costs. Autocar's editor-at-large, Matt Prior, whose children used telematics devices in their cars, explains: "Ours worked out a score based on smoothness of acceleration and braking, and whether a driver was going at a 'typical' speed for the road."
What are the benefits?
In the case of the Motability Scheme, where the cost of insurance is already included, customers with Drive Smart can earn up to £160 a year in e-gift cards. A weekly driving score will be shared with drivers in the mobile app - good scores will earn rewards for customers, while lower scores will prompt educational top tips for improving the score. This should help foster a culture of safer driving for young people on UK roads, who are statistically the most vulnerable to accidents. According to road safety charity Brake, one in five drivers have an accident within a year of passing their tests. But by having the ability to track your statistics through a telematics platform, drivers are supported to drive in a more mindful manner, helping to reduce accidents.
Is the use of telematics technology growing?
The Green Insurer published results in February 2024 that proves interest in telematics insurance is growing. Its report found that 81 per cent of UK drivers are aware of telematics-based insurance. And while only eight per cent are actual users, respondents said they'd consider telematics upon renewing, with this figure rising to 61 per cent for drivers aged 18 to 24. While it's a widely adopted practice for providers to encourage younger drivers to use telematics, drivers of all ages are encouraged to adopt these types of policies in the pursuit of safety. Many established insurance providers offer telematics coverage, such as Admiral's LittleBox, Direct Line's DrivePlus and Hastings Direct's YouDrive.
But won't my data be used against me?
Concerns around telematics often revolve around data usage. Telematics providers must adhere to strict data protection laws, so your driving data is kept safe. The same is true of Drive Smart with the Motability Scheme, which ensures your driving data is kept private. Only in the event of a serious incident, crime or legal obligation will your data be shared with the authorities. It's by no means commonplace but, as with any technology, telematics isn't always perfect. However, in the event a telematics device incorrectly records data that indicates you're driving poorly, customers can refer to our FAQs or contact Direct Line Motability.
How will this affect people on the Scheme?
If you, or any named driver of your Motability Scheme vehicle, is under 30, a Drive Smart device will be required for the duration of your lease as long as that driver remains on it. You will be contacted to let you know when you will be enrolled, and can expect your device to be posted. A small device will be sent to you in the post to fit on your windscreen, accessible by a mobile phone.
The device and app will register data based on a number of factors, such as your speed, acceleration, braking and cornering. The device includes self-installation instructions, along with an activation code for the Drive Smart app. Using Bluetooth, Scheme drivers will pair the app with the telematics device. Once the device is installed and you have completed the set-up, the first journey can be made and the first scores achieved. And to reward safe driving habits, customers receive e-gift card rewards, which can be spent at brands such as Amazon, M&S and Uber Eats.
You can find out more about Drive Smart on the Motability Scheme website.
