Lenin would have chosen telematics for his kids

Politicians – especially those of a blue disposition – are fond of talking up the benefits of de-regulation. In fact, the previous Coalition made a point of calling for a one in, one out approach to lawmaking. For every law passed, another had to be rescinded. It sounds good. The statute book is undoubtedly crammed with unnecessary legislation, and many of us argue that Government should resist the temptation to legislate as a default answer to every single issue and problem in our society.

Talk is cheap, however. The truth is that politicians exist to legislate. They can’t help themselves. They go into politics to change things, and statute is the ammunition of choice. Far from putting the brakes on lawmaking, most Governments accelerate it.

The motoring analogies (brakes/acceleration) are apt because last week, the Northern Ireland Assembly announced counterproductive legislation – the Road Traffic Amendment Bill – that significantly impinges on the rights of citizens (young drivers in this case), by introducing a night-time curfew for young drivers carrying passengers between the hours of 11pm and 6am.

Politicians believe that in, doing so, accident rates for young drivers will fall because they will be off the road at night. A self-evident truth, surely? Fewer young people on the road means lower accident risk.  (How authorities will enforce the law is another issue).

A number of insurers, including the ABI, leapt on the Northern Irish Assembly’s coat-tails. A ‘”sensible move,” the ABI said. DLG agreed and urged the UK Government to follow the Assembly’s lead and bring in Graduated Driver Legislation (GDL), which will create similar curbs on youngsters driving in the UK. All young drivers will have their rights eroded. No doubt proponents argue that a loss of personal liberty is a small price to pay for reducing ghastly road accidents.

Only Andy Watson, CEO of Ageas and a strong proponent of road safety for young drivers, took a different view, saying: “"The UK government has made it clear they favour a non-legislative solution to improve young driver safety on our roads and has ruled out GDL for now. At Ageas we've been calling for Insurance Premium Tax for under 25s to be scrapped to provide incentives for them to take up telematics products. This technology can significantly reduce the risk of young people being involved in an accident and is the only real assistance for them on the table."

Mr Watson is right. In its award-winning submission to the Prince Michael International Road Safety Awards, Carrot – which specialises in young drivers - said that their I-box telematics product delivered a 42% reduction in accident frequency when compared with a young driver insurance book with no telematics-led intervention.

Moreover, 72% of Carrot customers have stopped excessive speeding following a personal coaching conversation with the company’s dedicated risk management team.  

And, if young people need to be off the road during the small hours, the black box monitors their driving time and can spot infringements. Policy premiums can reflect this, and there is no need for legislation at all.

The UK has one of the best records on road safety in the world, and we are also leaders in using telematics technology to reduce accident numbers. Carrot is busy exporting its products to markets in Europe, the Middle East and elsewhere. Foreign buyers are impressed by the tech, and the statistics, and want bring what we do to their own markets.

Carrot agrees with Ageas that if the Government wants to make a significant and lasting difference to young driver safety, it should also be more enlightened about IPT, which is hugely regressive towards young drivers (who pay proportionately more in premiums). Scrapping IPT on telematics products would give drivers more incentive to adopt the technology, advice, and risk management that is a proven British success story.

Surely this market response is a more mature and appropriate response to reducing road accidents among young people, giving them the means and opportunity to drive safely?

Lenin said: “Freedom is so precious it must be rationed.” He would no doubt applaud the NI Assembly’s proposals from an ideological perspective, but I’m willing to bet that, if Lenin was a modern day dad, even he would have preferred his son or daughter to drive with a black box in their car.