Telematics Insurance, often referred to as black box insurance, gathers data about when, where, and how you drive to assist in decreasing the overall cost of your car insurance. A telematics box will be installed in your car, or some choose to simply download the mobile app on their phones, to measure numerous aspects of your driving style and this is then shared with your insurer. If you demonstrate safety while driving, your insurance premium will instantly be reduced. It comes as no surprise that telematics insurance is rapidly growing in popularity, especially for inexperienced and young drivers whose premiums are currently sky high.
Telematics compared to other insurance policies
Unlike standard insurance policies for your car, telematics insurance policies will require the installation of a device, known as a black box, in your vehicle, or by downloading a mobile app onto your phone.
Car insurance companies always look at various risk factors before calculating your premium. These can include where you live, your age, the make and model of your vehicle, and your occupation. What makes telematics insurance policies so unique is that they also include your driving behaviour, the length of journeys you undertake, the road you often use, what time you normally on the road, and how smooth you drive.
Initially, your telematics policy will cost around the same as a normal policy. However, as the insurance company monitors your driving behaviour, it will decrease your premium quite significantly. This can be done quarterly, when your policy is up for renewal, or even monthly. In addition, you can also view your scores, allowing you to make alterations to improve your overall telematics performance.
Who is telematics insurance for?
Car insurance can be a considerable strain on any motorist’s budget. The average car premium for insurance is around £500, young and inexperienced drivers can pay a significantly higher price for the same car insurance. Telematics insurance is one way to reduce the premium if you fall into the high-risk group consisting of inexperienced drivers, young drivers, or less frequent drivers with low annual mileage. Telematics insurance reckon they can cut down your average insurance premium by a staggering 25%. But there are some cases where motorists can benefit from even bigger savings. Inexperienced and young drivers can greatly gain from telematics insurance that often pay sky-high premiums. In addition, this type of insurance can also work to your benefit if you rarely get behind the wheel. Furthermore, there are also several different telematics insurance policies available, so this is another field where comparisons will need to be made before choosing one to decrease your overall premium cost.