Research carried out by Consumer Intelligence indicates that many young motorists are benefitting by paying lower car insurance premiums as a result of having a “black box” fitted to their cars. This is also known as “telematics’ car insurance.
Such drivers have been able to make savings of as much as 5.5% on their premiums on average per annum in the 12 months to August 2015 which, considering the level of premium that someone under 25 years of age is often asked to pay, may be a significant saving.
For many motorists that are in older age brackets, it is quite possible that they have seen motor insurance premiums increase when they receive their annual renewal notices.
For those of you that do not know about telematics car insurance, it involves a black box being fitted to the car often being located close to the dashboard. This technology monitors a variety of things including the speed at which you drive, how you brake and where and when you are driving. Quite simply, it assesses your driving capability and the risk you pose to the insurer of having a road traffic accident that impacts on the premium you pay. The premium is reviewed every few months based upon a variety of factors. This is a slightly different approach to what car insurance companies do when calculating the premium you will pay on a “normal” policy as black box cover is more “fine-tuned” to your driving capability.
There are an increasing number of providers of black box car insurance with some of the better known companies now offering such cover. Therefore, it is worth shopping around to see if you can get a better deal with telematics cover than an ordinary car insurance policy.
However, it is not just the young driver that may benefit from telematics cover. The older motorist may also find that their car insurance premium reduces with such insurance so he or she could be worth getting a comparison quote.