Allegedly, most people rate themselves as above-average drivers.
Now, you don't need to undertake a complex statistical analysis (although you can see one here ) to spot the mathematical flaw in the above scenario.
And as long as the measurement of driving skills remains a more-or-less subjective matter, most people can probably justify the above-average delusion - to themselves at least. Insurance companies might hold a more sceptical view of your driving abilities but without any firm evidence otherwise (such as, say, a string of traffic accidents on your record) who are they to judge?
However, with the arrival of IT-mediated, behavioural feedback devices, or 'telematics', insurers are now in the driver's seat. Rather than lumping policyholders together by age or sex, for instance, insurance companies can use telematics to identify individual driving risk factors, and set premiums accordingly.
In a paper written for Melville Jessup Weaver clients , I explain the pros and cons of four types of telematics devices on the market, which are broadly categorised as: professionally-installed 'black box'; 'dongle' plug-ins; integrated new vehicle units, and smartphone apps.
