April 21, 2024

New Connected Car Data Reveals Average Annual Mileage Driven Has Reduced By 33% in UK Since Peak In 2002

New driver data from ITS Telematics Solutions, the telematics data management experts, highlights how driving habits have changed in the last year as the average daily driving mileage continues to drop.

The average miles driven in the UK hit a high of 9,200 in 2002 and since then has steadily declined, down to 7,600 in 2018 and numbers are predicted to be around 6,080 for 2020 based on current trends.

The drop this year is in part due to the pandemic, but the reduced figures each year follows a trend that has seen a continual drop since a peak in 2002. It is also due to the increased popularity of private lease hire (PHP) as 1.6 million drivers now have restrictive contracts on total miles and are consciously driving less miles.

Many vehicle manufacturers are starting to react to these new trends by utilising telematics data to offer services that benefit drivers who use their vehicles less. These include Usage Based Insurance (UBI), Pay As You Drive (PAYD) and “E-FNOL” (First Notification Of Loss) capture to help reduce insurance costs.

ITS Telematics offer a universal data management solution allowing vehicle manufacturers to offer a seamless customer experience and a streamline approach to the claims process, whilst helping to automate and control claims costs for insurers and the manufacturers.

Adam Gooch, Commercial Director at ITS, commented, “As our driver data illustrates car manufacturers and insurers need to evolve to match driver requirements that have been changing for almost 20 years. It is only a matter of time before data led insurance becomes a standard requirement for all car insurance policies. The industry needs to move towards an offering that is more flexible and accounts for the fact we are driving less. At ITS we have seen first-hand how our technology has helped to reduce the cost of policies as it provides cost benefits to drivers and insights to reduce claims for insurers.”