Telematics-based insurance policies are making the transition from retail-orientated young driver programmes into schemes for older drivers with potential roll-out to the fleet market in future.

Coverbox, which specialises in pay-as-you-drive insurance policies, as begun offering products to older drivers, where it previously only targeted young, newly qualified drivers in an attempt to reduce high costs for that area of the market.

The system works via a telematics system installed in the vehicle, similar to those operated by fleets for management purposes, which can track mileage and behaviour and develop insurance policies based on such parameters.

Johan van der Merwe of Coverbox said: “75% of the telematics/pay-as-you-drive market concentrates on younger drivers – but this is a product for drivers of all ages

“The average driver is said to cover 10,000 miles a year, and many insurance policies – regardless of how many or few miles a driver covers – are based on that figure, and the risk that comes with driving that distance: so even if they drive a half or even a third of that distance, they’re still treated as being a 10,000-mile-a-year driver.

“Our [service] has a minimum annual mileage of 3000 – and because it’s pay-as-you-drive, and less distance means less risk, the driver pays for only the miles he or she covers. But if they have underestimated their annual mileage, then they can buy more miles to see them through the year.”