Insurer cancels motorists' policies after devices show them speeding

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Insurer cancels motorists' policies after devices show them speeding

Insurance giant AIG is cancelling motoring insurance policies for irresponsible and reckless driving.

The measures are being taken after analysis of 'black box' type devices being used by young motorists to monitor their driving habits. Young drivers get discounts from insurance companies for safe driving.

As a result of the analysis of the devices connected to young drivers cars, AIG Ireland says it has cancelled more than 200 young drivers' policies for persistent excessive speeding.

AIG has even called for legislation to make these telematics-based devices mandatory for all drivers under the age of 25.

They are convinced that if telematics becomes mandatory for drivers under a certain age, many lives will be saved.

The former president of the High Court, Nicholas Kearns agrees with the insurers when he said the use of telematics could successfully tackle motor insurance fraud and bring down the cost of cover, saying that such devices would mean that careful drivers were rewarded with lower premiums.

Mr Kearns has himself been appointed by the Government to head up the Personal Injuries Commission, which has been tasked with comparing award levels here with those internationally.

Telematics involves attaching a device, similar to a black box on an aircraft to record important data attached to a car to monitor the location, movements, status and behaviour of a vehicle.

The device can record where the vehicle has travelled, how fast goes, how fast the brakes are applied and if the horn was used and whether the vehicle swerved or not.

If you agree to have the telematics device fitted to your car you will be bound by the terms and conditions of the policy which means if you are in contravention of the stated parameters of the policy, you could end up losing your cover.

These devices link up with satellites and monitor important vehicle data. The devices have also proved useful in detecting reckless driving.

AIG has recently cancelled the policies of a number of young drivers for driving over the speed limit. One driver had insurance cover cancelled after being detected driving at 193km/h on a motorway and 170km/h on a secondary road.

AIG general manager Declan O'Rourke said the use of telematics was a win-win for drivers.


Justin Kavanagh
Justin Kavanagh is a recognised leader in automotive intelligence and vehicle data supply to the entire motor industry. He has almost 20 years experience in building systems from the ground up. As the Managing Director of Vehicle Management System, he understands the need and importance of trustworthy and reliable vehicle history and advice to both the trade and the public.
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