It is perhaps rather an opportune time to talk about telematics car insurance with the impending increase in car insurance premiums for many women due to the EU gender ruling that comes into effect on 21st December 2012.
Telematics car insurance is also referred to as “black box” car insurance. It was introduced in recent years, initially, to provide younger drivers with the opportunity to take out car insurance that would be potentially cheaper than conventional car insurance.
As you are no doubt aware younger drivers, especially males, have been faced with extremely high car insurance premiums because, statistically, it has been proven that they are more likely to have a car accident than an older driver. Therefore, for those under 25 year of age premiums have proved prohibitive to a point for many youngsters that they have just not been able to afford to buy a car.
Telematics car insurance, through the installation of a small black box, monitors a number of factors when someone is driving. For instance, the location of the car when it is being driven, what time of day it is being driven, how fast the car is travelling at, the way the car accelerates and brakes, how it takes corners and the distance the car travels. All this data is obtained by linking the black box to the car engine’s computer control system. The data is readily available to the driver.
Armed with this information the car insurance company will then calculate how well the car has been driven and base the premiums on this data and other information. The premium is agreed for the next 3 months, depending on the insurance company, so it gives the driver the opportunity to, potentially, improve their driving for when the premium is next reviewed.
The benefit to the motorist is that telematics car insurance has seen policyholders save hundreds of pounds in premiums each year.
It is now more widely available with a number of different providers and some make it available to any age of driver.