2019 UK car insurance industry watch covers the most important news stories, trends, research, opinion and developments for 2019.
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New car registrations at lowest level since 2013
New car registrations in the UK in 2019 fell to their lowest level since 2013, according to the Society of Motor Manufacturers and Traders (SMMT).
It was the third consecutive year of decline. The organisation says the industry is facing serious challenges adapting to new emissions legislation.
The SMMT’s figures show a total of 2.31 million new cars were registered in 2019, down 2.4% from the year before.
Since reaching a record high of 2.69 million vehicles in 2016, the market has been steadily contracting. A key factor has been the collapse in demand for diesel-powered cars, which fell by 22% compared with 2018.
Where once they accounted for half of all new cars sold, now they make up just a quarter of the market.
The SMMT says uncertainty over future air quality rules, and in particular over potential restrictions on diesel vehicles entering city centres, has left consumers confused.
That, combined with political uncertainty and a general fall in consumer confidence, has meant many potential buyers have decided to hang on to their old cars rather than investing in new ones.
Technology driving down the cost of UK car insurance
The latest and newest technology is more accurately able to determine a driver’s road risk and change their motor policy based on real-world factors.
Many young motorists continue to have their car insurance premiums reduced by adding telematics black boxes to their vehicles which can track how a car is driven, at what times and average speeds.
Tech company Floow is working with insurance companies across the world to develop more advanced tools which could see insurance prices dramatically tumble.
The technology could soon be able to identify how much of a risk a particular driver is to an insurance provider and vary premiums in real-time depending on this.
It could mean motorists who drive shorter distances and live in rural locations could see cheaper prices than those who regularly use their vehicles.
Aldo Monteforte, CEO and Founder rot the Floow said: “Insurance leaders are correct to predict that telematics will be a game-changer in the field of insurance.
“We are entering the age where we can precisely quantify the risk if every driver, redefine insurance, and help them become safer on the roads.”
He added: “On a wider scale, the technology is there to encourage us to drive better and make our roads safer, benefiting everyone.”