Installing a black box in your car to monitor your every move on the road hardly sounds like an appealing proposition. And yet, that’s exactly what driver all across the UK are doing. What is it about telematics systems that makes them so attractive, especially to young vehicle owners?
An article by car magazine Auto Express has the answer: Black boxes offer a novel way of bringing down your insurance costs by an unprecedented amount.
Telematics car insurance: On the rise
To understand just how popular the phenomenon has become, here are a few impressive numbers:
- In 2009, just over 10,000 drivers had installed a black box in their vehicles.
- At the end of 2014, that number had risen to 323,000.
- Since then, 120,000 more motorists have fitted their car with a telematics device, another jump of 40%.
There is no denying, then, that the black box has gone from being a mandatory item for trucks to a mainstream device. So what, exactly, makes it so special?
Why it’s so appealing
According to Auto Express, what makes black boxes so frightening in a Big-Brother-kind-of-way also makes them extremely effective as a monitoring device for insurance policies. Imagine you could determine the cause of an accident with absolute certainty and without having to initiate expensive investigations, for example.
This efficiency allows insurance companies to reduce the cost of a telematics insurance by as much as a quarter compared to equitable regular policies. Which makes it particularly interesting for younger drivers with limited financial means or anyone on a shoestring budget.
Possibly the best thing about telematics car insurance is that it has some significant positive side-effects. According to Auto Express, black boxes ‘monitor things like speed, acceleration, braking and the time of the journey whilst driving’. They therefore allow for premiums for particularly careful traffic behaviour and encourage safe driving.
This isn’t just wishful thinking, either but actually works out in practise: Black boxes typically lead to a 40% decrease in crash risk. Which means that telematics car insurance may not just be good for your wallet – it may benefit your health and the wellbeing of your family as well.