If you want to sort car insurance all on your mobile then that’s where Kruzr comes in. And you’ll probably get a better deal as well.

Driving assistant app Kruzr recently received additional funding to help expand its business into Europe and the UK. But telematics uptake in the UK remains limited, so the company will need to be smart about its target market in order to succeed.

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Kruzr developers claim the company’s mobile app has reduced distracted driving by 80% in addition to the car insurance savings. The app automatically detects when users are driving and takes control of all calls and messages, only letting them through in case of an emergency.

Also, the app also monitors external conditions like weather and traffic density, and sets a safe speed range based on the information it collects.

Users of the app should drive more safely, and – if they use a telematics policy with their insurer – pay lower premiums as a result. However, telematics penetration is low among UK drivers.

According to GlobalData’s 2018 General Insurance Consumer Survey only 13% of UK drivers have a telematics policy, while only 6% of drivers use a mobile app in conjunction with a telematics policy. A third of those who do not have a telematics policy raised concerns about privacy. These factors suggest Kruzr will experience difficulty generating uptake in the UK market.

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Fortunately for Kruzr, telematics policies are more common among younger drivers. According to GlobalData research, 35.2% of drivers between the ages of 18 and 25 have a telematics policy, compared with only 2.5% of those aged 55–60. This is not surprising, as younger drivers are considered riskier and consequently face much higher premiums. They are thus more willing to be monitored by their insurer in order to get a discount on their premiums. In addition, privacy concerns are slightly lower among younger drivers. Privacy fears may also be lessened in light of the recently passed General Data Protection Regulation, which gives more control of data to consumers.

By providing insurers with access to its app and the data it collects, Kruzr has the potential to provide positive outcomes for all players in the market through reduced premiums for drivers, reduced claims costs for insurers, and safer roads throughout the UK.