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Trust in telematics

Recent research from Whatcar.com shows that nearly seven in 10 of us don’t believe that ‘black box’ technology will lower our insurance premiums by demonstrating that we are a better driver.

While a prime aim of telematics policies is to encourage us to drive more safely, it seems that not many of us trust that the little black box or app is actually achieving that. Whatcar.com found that 89% of those asked would only choose a telematics policy to save money, and only 39% would choose ‘black box’ insurance at all.

The rise of telematics

Many of us dislike the idea of being monitored and it turns out people don’t believe that it captures enough information to show whether they’re a good driver. Despite this, earlier this year the British Insurance Brokers’ Association (BIBA) found that uptake in telematics policies grew by 40% as it seems people are starting to see the benefit.


What are the benefits?

Black boxes, which are about the size of a mobile phone, or equivalent apps that are now available, monitor your driving using GPS positioning and a motion sensor. They look at a variety of factors to determine if the car is being driven safely, and share this information with your insurer, with the potential for them to lower your premium at renewal time if you’ve driven well.

Your black box will pick up on the usual good driving traits such as avoiding aggressive acceleration and braking, as well as sticking to the speed limit, and relay these back to record your driving style. Other things like the number of miles you do and what time of day you use your car may also be reviewed.

This is supposed to generate a more accurate risk profile than the traditional method of just name, age and post code, which could potentially help to lower your premium at renewal time if you’ve shown yourself to be a safe driver. You can also view the information as you go along so you can make any changes to your driving so you can try to improve your risk profile.


Telematics policies can be particularly useful for the younger drivers among us who are trying to secure lower premiums and can help those with driving convictions demonstrate that they could become a lower risk. However, for more experienced drivers with significant No Claims Discount, the savings are not so tangible and you may be better off with a traditional policy.

So if you think you could save with a telematics policy, why not have a look at who offers them and start a quote today.

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