Telematics insurance, more commonly known as black box insurance, lets your insurer monitor your driving skill and style. This is usually done via a box-like GPS device, a plug-in device or in conjunction with an app downloaded on a smartphone. Your insurer will analyse information such as acceleration, braking, cornering, driving smoothness, miles driven, the date and time you drive and how often you take breaks when on longer journeys. You should check with each insurer, as the information they collate may be slightly different.

Based on this information, they will then score your driving, which will affect how much your insurance premiums are. A higher score indicates good and safe driving and could result in lower premiums. Some insurers also offer additional rewards such as vouchers or cashback. However, if an insurer sees evidence of poor and/or dangerous driving, the score will be lower and could result in a more expensive insurance policy.

Whilst this type of insurance was originally designed for young drivers as a way of rewarding safe driving by reducing premiums, other individuals may be able to buy this type of policy, regardless of age. Like any insurance policy, the cost will depend on several factors, such as age, address and the make and model of car. Visit our blog ‘How are car insurance premiums calculated?’ for further information.