Remind me, what is telematics?
Car insurance generally rates individuals based on certain characteristics, for example, age. If the statistical information the insurance provider has gathered about your age group suggests you’ll be at a higher risk of making a claim, your premium will be based on these statistics (amongst others).
Telematics, in contrast, looks to tailor premiums to the way you drive, not to the way others in your particular demographic drive.
Telematics or black box insurance policies as they are commonly known, usually involve a small box being fitted in your car or using a smart app. Typically, the box option is fitted under the dashboard or in the glove compartment. The app or box then uses GPS satellites to measure and relay information on how you drive which may then lead to cheaper premiums as a reward for safer motoring.
Though policies differ, they may also look at the factors that affect the chances of having an accident. Are you driving during rush hour? Are you driving at night? Are you on busy roads a lot of the time? Do you keep to the speed limit and brake sensibly?
Often the policies have a mileage limits and curfews included, drive more miles than your limited to or drive at times outside of the curfew and you may have to pay extra.