Telematics literally means the communication of information through a digital channel. In terms of telematics car insurance the information that is sent is your driving style. It’s gaining popularity, take up is said to increase with ABI Research stating that global telematics subscriptions could exceed 107 million in 2018.
Young drivers, usually aged 17–25 often pay a lot for their insurance policies because of their age and lack of experience behind the wheel, they could save on their car insurance costs by opting for telematics, or black box insurance. As much as £500 could be saved by young drivers with a telematics insurance policy.
Drivers with penalty points who pay additional costs on their premiums due to their driving history could also benefit from a telematics insurance policy.
As part of the policy the insurer attaches a black box to your car, about the same size as a smartphone and it’s usually fitted behind the dashboard where you can’t see it, so no one will know you have one.
The black box will monitor:
Your driving for speed – whether you are breaking speed limits
Braking – how forcefully brakes are applied and how often
Acceleration – if this is done safely
Cornering – how you take corners and whether you take them slowly enough
All of this information is stored in the black box and then digitally transferred back to your insurer.
Provided the black box monitors you doing all of these things safely then your insurance costs will decrease accordingly.
Most insurers will send you feedback too so you can see where your driving can be improved and your costs lowered. Not only will your premium costs be lowered but it will increase your awareness of driving safely making an accident less likely to happen too.
This depends on the insurance company and in particular their terms and conditions. Some companies charge for the fitting of the black box, which can increase your costs.
You will need to check if the company you choose inflicts a nighttime curfew or restrictions on the places you can drive, as some companies do.