Telematics car insurance, also known as black box insurance, utilises satellite technology to track and monitor the driver’s behaviour on the road. The tracking equipment records the time of day the car used on the roads, average speed, cornering and acceleration rates to gauge the driver’s ability and safety on the road.
According to the latest research from The Co-Operative car insurance, telematics car insurance has led to a 20% reduction on average of serious accidents involving young drivers. The research looked at 10,000 young drivers aged between 17 years and 25 years and found that those with black box technology monitoring their driving were on average 20% less likely to have an accident.
Even when those with telematics insurance do make a claim, their insurance claims amount is typically 30% lower than young drivers with ordinary insurance.
As well as reducing the number of accidents involving young drivers, and helping to lower the cost of a claim when one is made, those who drive carefully with telematics cover can expect to see a reduction of a much as 20% off the cost of their car insurance a year after using the new style of car insurance.