Telematics car insurance

Posted by on October 12th, 2015

Telematics is one of the new boys on the car insurance block and since its launch it has been popular with young drivers.

Telematics (or black box) insurance monitors your driving and this information is used to decide how much you pay for your policy.

The idea is that good drivers, who stick to speed limits and the rules set out by their insurer, will be rewarded with lower prices.

That’s great news for young drivers because those aged 17-25 are faced with the highest car insurance prices based on perceived risk with standard insurance policies.

But with telematics, the amount you pay is in your hands to a certain extent.

How is telematics insurance different?

Telematics insurance is a unique form of insurance because your driving could change the amount you pay for your insurance.

But for that to be possible your car needs a smartphone-sized computer installing, making it a little bit different to anything else on the market.

In terms of cover, telematics policies are generally Comprehensive however some providers also offer Third Party Fire and Theft policies too.

With standard policies you buy the insurance and get driving straightaway, but remember with telematics you need to get the black box device installed in your car.

Telematics can save you money

Telematics insurance can save you money if your insurer thinks you’re a good driver.

But a good driver in an insurer’s eyes is not somebody who can doughnut, drift or do hand brake turns.

What is a good driver?

A good driver in the eyes of a telematics insurer is one who drives safely, who:

  • Drives within the speed limit
  • Accelerates and brakes smoothly
  • Takes corners smoothly

If you do that, your insurer should deem you a good driver and your insurance premium should reduce, however other factors also go into calculating your insurance costs.

Ford Ka for learner drivers

What else influences telematics insurance price?

1.    The roads you drive on and when you do

If you drive exclusively around the city and outside of peak hours, your insurer should reward you with lower premiums.

If you commute in your car at peak times when accidents are more likely to happen, you could end up paying more for your insurance. If you consistently drive on motorways at 03:00am, you may end up paying more too.

You should always ask your insurer how your black box data is looked at and what makes a good driver, particularly when it comes to what time of the day is deemed high risk by insurers.

2.    Time on the road

As with any insurance policy, if you only drive 1,000 miles a year, your insurance should be cheaper than if you drove 15,000 miles a year.

Your black box will record how long you are on the road for and if it’s not that long, you should see a reduction in your telematics premium.

3.    The normal considerations

Your black box assesses your driving; it does not change where you live, your occupation or where your car is parked overnight.

That means that there is still some average data used to calculate your insurance.

So will telematics save me money?

If you’re a good driver in the eyes of your insurer, telematics policies should save you money compared to standard policies.

The important thing to remember is that your black box data can either reduce your premium or bump it up, depending on how you drive.

That means the potential is there to save money but there is also the potential to pay more, so it’s probably worth checking out telematics options when you compare with over the phone and online.

Why is different? compares telematics insurance prices from a panel of the UK’s leading brokers.

That means you get the pick of some of the most competitive quotes from the leading insurers.

But if you’ve had enough of filling in online forms then don’t worry, you won’t miss out with because you can compare quotes over the phone too.