Imran Hussain – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Imran Hussain on 2016-06-20.

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect of the use of telematic black box electronic recording devices by insurance companies on the cost of car insurance.

Harriett Baldwin

In general, an insurer will make a decision about the terms on which they will offer cover following an assessment of the risks posed by an individual. Some insurers offer discounts to drivers who choose to use telematics in their cars. This is usually informed by the insurer’s claims experience and other industry-wide statistics. The Government does not intend to intervene in these commercial decisions by insurers as this could damage competition in the market. The respective capabilities of insurers to assess risk is a key element on which they compete. This competition is important and should lead to better products and lower prices for consumers.