Black box technology continues to bring down cost of car cover
Telematics policyholders stand to save an extra £212(14.2 per cent) on the cost of their car insurance premiums, according to analysis by MoneySuperMarket.com.
The comparison site analysed 12.2 million car insurance quotes run on the site over 12 months and found telematics policies were being offered to 15.8 per cent of motorists. The analysis found the drivers most likely to be offered a telematics policy when looking for insurance were motorists in the 17-19 age bracket, as almost half (48.8 per cent) in this age band were likely to be offered a telematics policy, followed by 28 per cent of 20-24 year olds.
Within the 17-19 age group, female drivers were most quoted for telematics policies, making up almost a quarter (24.1 per cent) of all telematics quotes. Drivers in this age group also stand to make the largest savings - a huge £438 on the annual cost of their car insurance by switching to a telematics policy - (20.6 per cent). Motorists in the 20-24 age bracket can save up to £169.78 (12.9 per cent) through taking out a telematics policy, and those aged 25+ up to £117.67 (10.1 per cent).
Telematics policies serve to make motorists more aware of how they drive which in turn can make premiums cheaper. A small black box device is fitted to the vehicle that is able to monitor a number of factors, such as the times of day you drive, how you accelerate and brake as well as monitoring what types of roads you use. The driver is then able to monitor their progress online and can make any adjustments to their driving style accordingly. There may be restrictions however, such as to the times in the day that you are able to drive and a limit on your annual mileage.
Kevin Pratt, car insurance expert at MoneySuperMarket, said: “Telematics technology, similar to that found on Formula One racing cars, is now becoming mainstream within the insurance industry, and is playing a key part in the future of motoring. The financial benefits of using telematics are obvious for drivers who are considered a higher insurance risk: installing a black box device in your car can save around £212 on the price of a policy compared to standard car insurance.
“Premiums for younger drivers often soar into the thousands of pounds because their inexperience means the risk of their being involved in an accident is high. Having a black box fitted to the car to monitor driving behaviour not only provides an insurer with a greater knowledge of the driver, but it can also influence driving habits as a user is more aware their driving is being monitored.
“Motorists should check whether their insurer will charge for the black box and installation if they cancel the policy or switch at renewal. And it’s important to remember that telematics is based on driving patterns so isn’t a guaranteed way to see a cost reduction. Motorists should be aware of all their options to find the most suitable type of policy.”