How does telematics insurance work?

Drive IQ estimates that by 2020, 1 in 4 drivers will be covered by a telematics insurance policy; otherwise known as black box insurance. So what is telematics insurance and why is it expected to become so popular? With telematics insurance policies, a black box data recording device is fitted to your vehicle. Driving behaviours are then monitored by insurers, who will be analysing the policy holders overall driving performance. Car insurance discounts will be offered to motorists who obey the rules of the road; sticking to speed limits and avoiding aggressive movements. However, people who regularly speed or brake/accelerate severely will be greeted with more expensive car insurance premiums. With young drivers regularly being offered expensive car insurance premiums on account of them being in a high risk age bracket, telematics insurance has the potential to be the fairest form of cover available as it will places less emphasis on generalised statistics. Find out more about black box insurance in our video on the topic: http://www.youtube.com/watch?v=aRGLmZ2_2-s  

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