Aviva is calling on the Labour government to make telematics-based motor insurance a legal requirement for drivers aged 17 to 24 during their first year on the road, backed by new claims data showing the disproportionate risk that newly qualified motorists pose to insurers and other road users alike.
The insurer's data, covering claims submitted between January 2023 and March 2025, found that around 11% of newly qualified drivers lodged a collision claim in their first year, against just 5% of those with at least a year's experience. Drivers aged 17 to 24 represent approximately 7% of UK licence holders but are involved in roughly 20% of fatal and serious collisions. Young male drivers in that age group are four times as likely to be killed or seriously injured on Britain's roads as drivers aged 25 and over.
The risk profile feeds directly into premium pricing. According to the Association of British Insurers, the average premium for 17-year-olds stood at £1,932 in Q3 2025, down 25% year-on-year but still roughly three and a half times the UK market average of £560 recorded in Q1 2026. Drivers aged 17 to 20 with a telematics policy save an average of £379 a year compared with standard cover, with 78% of that age group obtaining cheaper insurance through black box products.
Owen Morris, chief executive for UK personal lines at Aviva, said the scale of the problem required direct intervention.
"The data shows there is an increased likelihood of accidents in the early stages of driving and telematics policies can help support new drivers in their highest-risk period," he said.
Aviva's internal data indicated a material safety benefit from the technology. New drivers on telematics policies reduced collision claims by nearly 50% over the course of their policy, compared with around 30% for those on standard cover. More than half of drivers who received the lowest driving scores improved their behaviour after receiving personalised feedback.
Morris described the technology as functioning like a continuous coaching tool.
"By monitoring when, where and how people are driving, telematics can act as a virtual coach, providing advice on improving riskier behaviours, incentivising safer driving and helping to reduce premiums. Importantly, telematics can provide reassurance to young motorists and their families, particularly when they are driving alone or at night."
Alongside the mandate, Aviva is urging ministers to exempt young driver telematics policies from Insurance Premium Tax during the first year of driving. IPT has been fixed at a standard rate of 12% since June 2017; for a 17-year-old paying close to the ABI average, that levy adds approximately £230 to the annual cost of cover.
A Censuswide survey of 2,202 motorists, commissioned by Aviva in January 2026, found that 73% believed telematics should be mandatory for young drivers. Some 60% of 17 to 24-year-olds agreed.
For the wider market, mandatory telematics raises as many commercial questions as it answers. Telematics has featured in UK motor insurance for more than 25 years, yet penetration across the personal lines motor book remains around 10 to 15%. Usage is concentrated in the young driver segment, where premium savings and parental influence drive uptake, but retention is weak once affordability improves. A mandatory first-year requirement would effectively anchor the highest-risk cohort to monitored policies during the period the data most clearly supports.
The proposal also sits within the unresolved debate around graduated driving licences. In November 2024, the government confirmed it was not considering a GDL scheme for Great Britain, though it acknowledged young drivers were disproportionately represented in serious road incidents. The ABI, the AA, the RAC and road safety charity Brake have all backed GDL-style restrictions in various forms.
Full industry consensus on mandatory telematics remains elusive. Telematics provider IMS warned in January 2026 that more than half of UK motorists remain reluctant to share driving data, citing privacy concerns. Any compulsory scheme would need to resolve questions around how driving data is stored, how it is used in underwriting, and whether it can be used against policyholders at claims stage.
In 2024, 4,740 people were killed or seriously injured in crashes involving at least one driver aged 17 to 24, according to Department for Transport figures. The wider market implication of a mandatory scheme is significant: compelling all new drivers on to behaviour-rated policies would represent the most substantial structural shift in UK motor underwriting for a generation. Whether that prospect advances is now a question for the government's road safety consultation — and whether it produces the political will to act.
