The Office of Fair Trading (OFT) has announced it’s launching an investigation after it emerged drivers are paying up to 40% more for insurance cover this year.

Trimble says that it adds to the evidence that premiums need to be made fairer by being based on actual behaviour behind the wheel.

As well as establishing the reasons for huge rises in premiums across the UK, the OFT will also examine inflated costs in Northern Ireland.

Currently, insurers base premiums on the age of the driver, gender, where they live and the age and make of car they drive. However, Trimble Fleet Solutions says that it would be fairer to base costs on how a person actually drives.

“The fairest way for insurers to charge for insurance is to judge their actual driving,” said Martin Otter, insurance development manager, Trimble Fleet Solutions.

Trimble is currently working with insurance companies to deliver in-vehicle technology that captures data that enables insurers to base their premiums on times of travel, car usage, speed and harsh manoeuvres.

Otter said: “Rather than basing premiums on assumptions, insurers can now take advantage of technology to help make premiums more affordable for all.

“Some insurers have already adopted a pay-as-you-drive approach to premium calculations, and although still in its infancy, it is already proving popular with younger drivers facing extortionate traditional insurance quotes.

“Faced with the knowledge that premiums could be significantly reduced by safer driving, drivers are also more likely to drive more safely, thereby making the roads a safer place for us all.”

Trimble Fleet Solutions believes this approach to assessing premiums is equally applicable to fleet insurance companies and the organisation recently announced that it is collaborating with one of the largest fleet insurers globally on a new integrated fleet risk management program.