| answer text |
<p>Department for Transport officials regularly liaise with representatives of the
motor insurance industry on a variety of issues such as the cost of insurance. However,
it is the responsibility of individual motor insurers to set premiums and the terms
and conditions of their policies, and the Government does not intervene or seek to
control the market.</p><p> </p><p>The Government is determined that insurers should
treat customers fairly and firms are required to do so under the Financial Conduct
Authority rules.</p><p> </p><p>There is evidence to suggest that younger drivers and
those with less experience carry a higher risk. Some insurers have introduced the
use of telematics or in-car black boxes to allow better risk-based pricing of insurance,
especially for new drivers. It means insurers now have a real time data feed, which
allows them to see an individual’s driving behaviour; this had not been possible in
the past. This can help reduce insurance premiums if drivers show good driving behaviour
with a black box installed in their cars.</p>
|
|
