Also known as black box car insurance, telematics policies use your own driving data – where, when and how you drive – to potentially help bring down the cost of your car insurance.
When you sign up for a black box car insurance policy, a ‘black box’ is installed inside your car. This measures various aspects of your driving and shares that data with your insurer, who can alter your premium price day by day.
When you have a telematics policy, you can see the ‘scores’ you are getting as your driving is monitored, allowing you to make adjustments to improve your performance.
If you can demonstrate that you are a safe driver, your insurance premium will reduce. However, if you drive erratically then your premium could go up as you are deemed more at risk of making a claim.
Telematics can cut the cost of cover for young drivers
Telematics insurance companies claim they can cut the average car insurance premium for young drivers by as much as 25% for safe drivers. According to their data, the average 17 to 24-year-old driver could save £363.25 with telematics insurance.
Get more information on telematics car insurance
The independent moneysupermarket.com web site has lots more information on telematics car insurance.