What is telematics?

Telematics monitors how you drive your car, but not all policies are the same. This guide explains how telematics works, the data it collects and how it can impact the cost of car insurance.

At a glance

Telematics involves a device or app being used to record your driving behaviour, such as speed and mileage.
Using telematics to demonstrate you're a safe driver could reduce the cost of your car insurance.
However, other factors such as your age and claims history are also important.
Telematics policies vary, so carefully check the terms and privacy details.

What is telematics?

Telematics is, essentially, a GPS (Global Positioning System) tracker. It uses sensors and mobile data to collect information about how and where you drive.

This is often used by companies to manage their vehicles and optimise routes, driver safety and overall efficiency.

Telematics is used in car insurance to monitor driving behaviour, such as speed and mileage. This helps insurers assess a driver’s risk profile, and can therefore impact the cost of their premium.

The general idea with telematics is that the safer you drive, the cheaper your car insurance could be.

How telematics works in car insurance

Install a telematics system

First, you need to install a telematics device in your car or set up an app on your phone, depending on the policy.

Record your driving information

As you drive, your telematics records information about each journey. This is then shared securely with your insurance provider.

Get your driving score

Your provider reviews your journeys over time to build a picture of your driving style, often turning it into a driving score. It may use that score to adjust your future premiums or offers.

What information does a telematics device record?

Depending on your policy, telematics can collect various details about your driving, including:

Driving behaviour

Speed and speeding patterns
How smoothly you brake and accelerate
Cornering, steering and overall vehicle control.

Journey and usage

Mileage
Date and time of travel
Types of roads used.

Location

Route taken
Where a journey starts and ends.

Vehicle-related information

Whether the telematics device is connected and working properly.

Not all telematics collect the same information. Always check the policy wording and privacy information so you know exactly what’s monitored and how your information is used.

Important to know

Some app-based telematics may also be able to monitor phone use while you’re driving. Physically using your hand-held phone behind the wheel (e.g. for texting) is illegal and it could be flagged to your insurance provider, potentially affecting your cover.

Is telematics the same as a black box?

The terms ‘telematics’ and ‘black box’ are often used interchangeably, but that’s not always accurate. ‘Telematics’ is an overarching term for different types of devices, which can include a:

Small, fitted device (black box)

Black boxes are typically fitted behind the dashboard by an engineer. They can be a convenient option if you plan to keep the same car for the long term, but they’re not always the most practical.

You’ll need to arrange a fitting appointment and a re-fitting if you change cars.

Plug-in On Board Diagnostic (OBD) device

This is a self-install version that plugs into the OBD port, a socket usually found under the steering wheel or glovebox. It looks similar to an HDMI port and mechanics often use it to connect a device that can diagnose faults in the car.

Some OBD devices also plug into 12V sockets, though these are less common in newer cars.

OBD devices are quicker to fit and easier to move between cars. However, if you’re looking at changing cars, double-check compatibility first to ensure the device will be suitable.

Smartphone app

This involves downloading your insurance provider’s app, which uses your phone’s GPS to record your journeys. Some apps record automatically, and some you need to activate manually before setting off.

You also need to have your phone with you on every trip and make sure it has enough battery and signal to record journeys accurately.

Protecting your data and privacy with telematics

UK data protection law controls how companies use your data, and it applies to telematics.

When choosing a telematics policy, your insurance provider should explain what details it’ll collect and how the data might affect decisions regarding your premium.

You’ll usually find this information in your privacy notice, policy wording and/or app permissions (if you have a telematics app).

Your rights and how to raise a query

You can check your driving data via your telematics app or insurance account at any time.

If you think a journey has been recorded incorrectly, contact your insurance provider directly and ask for a review. It should explain how to request a correction to your data.

Telematics pros and cons

Pros

Could lower your car insurance premium if you demonstrate you're a safe driver
May provide feedback that could help improve your driving habits
If your car is stolen, the police could use your telematics device to find your vehicle (provider-specific)
Extras may be included, depending on the policy (rewards, tracking features, accident support)

Cons

Your premium could increase if you get a low driving score
Continuous monitoring could cause stress while on the road, especially for inexperienced drivers
Some telematics policies may have time/geographical restrictions
App-based telematics could lead to inaccurate data if you lose signal or your phone dies while driving

Who is telematics suitable for?

Telematics may be useful for some drivers but not others; it depends on your circumstances and priorities.

It may suit:

New or young drivers facing higher premiums. Our data shows that 17-24-year-olds have the highest average annual premium compared to other age groups^[1].
Drivers with motoring convictions wanting to demonstrate they can drive safely
Low-mileage or infrequent drivers could pay less with pay-as-you-go (PAYG) telematics policies.

It may be less suitable for:

People who often share their car with other drivers (as some policies assess how the vehicle is driven overall)
Anyone uncomfortable with being monitored while driving
If you live in or regularly travel to areas with poor signal coverage (for app-based telematics).

[1]51% of young drivers between 17-24 years old could achieve a quote of up to £1,340 for their car insurance based on Compare the Market data in December 2025.

Common telematics myths

The way telematics works can differ between insurance providers. This can cause confusion around what they do and what it means for the driver. We’ve busted some of these common myths.

It has a curfew

Telematics policies typically don’t apply curfews as such. Some insurance providers consider night driving as high risk (usually after 11pm). This could affect your driving score and/or premium, but it doesn’t physically stop you from driving during those hours.

There's a mileage limit

Often, telematics doesn’t have strict mileage limits. However, insurance providers could check whether you’re driving more than your estimated mileage at the start of the policy and may adjust your price accordingly.

It controls the car or can report me to the police

Telematics can't control your car or intervene in actions such as braking, steering or accelerating. The way you drive is entirely your responsibility.

It also doesn’t automatically report drivers to the police for things like speeding. Telematics data goes to your insurance provider to assess your driving behaviour.

However, the police may request information from your provider for court orders or as evidence in serious incidents.

Questions to ask before choosing telematics

Considering telematics? Answering some of these questions could help you decide if it’s the right choice for you:

What type of device is it and will I need to install it myself?
What will the device monitor?
How would the insurance provider score my driving?
Is a good driving score likely to lower my premium?
Does the telematics device restrict my driving?
Are there any fees for switching cars?
What happens if the device/app fails or records a trip incorrectly?

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FAQs

Can you turn telematics off in your car?

You may be able to turn your telematics off, depending on the device. If it’s an engineer-installed black box, you’ll likely need to contact your insurance provider to disable it.

If it’s an OBD device, you can simply unplug it. If you have app-based telematics, you should be able to manage the setting directly via the app.

However, it’s crucial to keep in mind that turning off your telematics could breach your policy terms and, in some cases, invalidate your insurance or lead to a higher premium.

Can other drivers affect my telematics score when using my car?

If other named drivers use your car, their journeys could impact your telematics score, depending on your policy and device type.

Black boxes and OBD devices tend to track how a car is driven overall, regardless of who is driving. Some telematics apps may have some customisation features, allowing you to record individual drivers.

Always check your policy terms or speak to the insurance provider directly to understand how it treats trips made by additional drivers.

Is my location tracked with telematics?

Yes, but it tracks your journey rather than your general whereabouts.

Telematics uses GPS to understand when and where a journey starts and ends, and the route taken. This can help insurance providers assess your driving patterns and, in some cases, support features such as theft recovery and accident assistance.

What doesn’t telematics track?

Typically, telematics records driving behaviour only. It doesn’t track things like:

Audio/conversations
Whether there are passengers in the car
Fuel level.

However, in some cases telematics apps can inform insurance providers if you use your phone while driving.

What's the difference between pay-as-you-go and behaviour-based telematics?

Pay-as-you-go (PAYG) telematics policies mainly measure how far you drive. Your premium is directly linked to mileage.

Behaviour-based telematics (like black boxes) look at how you drive as well as how far, considering factors such as speed, braking and time of travel.

Some policies combine PAYG and behaviour-based telematics, so it’s important to check what is collected before choosing your cover.

Can my telematics insurance be cancelled for speeding?

One minor speeding incident may not lead to cancellation, as insurance providers tend to look at your driving over time. But repeated high-risk driving could invalidate your insurance, depending on the terms.

Can I drive before my black box is fitted?

You should usually be covered from your policy start date, even if you’re waiting for an engineer to come and install your black box. To be on the safe side, though, check with your insurance provider if you can drive in the meantime.

Written byKate Moss-RobinsPersonal finance and utilities specialist

Over the past decade, Kate has worked in various industries, including company secretarial, small business support and property investing.

Her move to financial services in 2022 not only helped her find her niche in personal finance writing, but also just how alienating finance can be. She’s now motivated by making everyday money a piece of cake for everyone, helping her readers feel informed and in control.

Kate now specialises in savings and current accounts as well as broadband, mobile and energy products.

Edited byStephen Maunder Personal finance and insurance specialist

Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.

Reviewed byAmy RoothamInsurance expert

Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.

Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.