Would you like a black box fitted to your car to monitor your every motoring move? It sounds a bit creepy, but the latest technology could in fact cut your insurance premiums by as much as half.
The black box is actually a satellite device that tracks your car. It is no bigger than a mobile phone but it can record not only your mileage but also when and how you drive.
So, if you travel during rush hour when accidents are more likely, the box will know. It can also tell if you are prone to slam on the brakes or put your foot down on the accelerator.
Telematics technology – benefits for drivers
The telematics technology has two big advantages. First, it improves road safety. The use of telematics has cut accidents involving young drivers by between 35% and 40%, according to Insurethebox, a motor insurer.
Second, it can lower premiums. The average premium for the Co-operative’s Young Driver telematics insurance is £1,200 – about half the industry average for young drivers.
But you don’t have to be in the first flush of youth to benefit. Coverbox – another firm that uses tracking technology to monitor your driving – reckons that its customers pay about 25% less for cover than with a standard policy.
Different insurers work in different ways. An annual policy from Insurethebox, for example, covers 6000 miles. Bonus miles are then awarded each month to careful drivers. Miles are deducted for a number of risky activities including driving at rush hour or at night. The data is also used to decide renewal premiums, with discounts for the safest motorists.
Coverbox’s pay-as-you-drive insurance allows you to pay for cover by the mile and the price per mile varies according to the time of the day or night.
Now, you might be wary of a spy in your car, but if it brings down your car insurance premium, why not?