Telematics car insurance

The way your device will be installed depends on the type of device you’re using – a black box is usually installed by a professional at the arrangement of your insurer. If you chose a plug-and-drive device it will be sent to your address, and you’ll just need to plug it into your car’s charging port or cigarette lighter.

If you opt for an app you’ll just need to download and install it and it will track your driving automatically through GPS.

The cost of installation if you get a black-box is often, but not always, taken care of by your insurer. However there are also some other fees or charges you should be aware of, including:

• Reinstallation if you change cars
• Removal fees
• Damage fees – and your policy could be cancelled if it’s deliberate
• Breaking curfew
• Breaking speed limits
• Missing your installation appointment

Depending on the provider and type of telematics device you have, it may be able to detect if you’re involved in a road accident – usually by measuring force of impact. The device can send your location to the emergency services, and the data provided may even be able to help insurers determine what caused the accident and whether you were at fault.

If you have a plug-and-drive device or you use an app, changing car shouldn’t be a huge hassle, but if you have a black box installed it’s somewhat trickier. Your insurer will arrange the installation of a new box in your new car and the old box will be deactivated – this may be for no cost, but some providers charge up to £150 for the service.

As with any insurance policy you’ll be able to cancel when you want to, but you may face an early cancellation fee if you do so before the policy term is finished. If you do choose to cancel, your insurer will deactivate your monitoring device so you won’t send any more driving data.

If you have a black box you can choose whether you want it removed or not, though as mentioned above this may cost up to £150.

If your policy ends and you want to change providers, your current insurer will deactivate your account and device so they won’t receive any more data. If you have a black box and you want it removed, you might have to pay the removal fee.

If you’re driving abroad you should still be covered by your policy, though you’ll need to check with your insurer whether your driving is still assessed.

Your insurer will keep your driving data safe and secure, generally just using it to monitor your driving habits and checking any claims you make or someone else makes against you. They may also share it with their business partners, but they won’t sell it.

For youngsters getting their first taste of independence, you might be worried about your insurer sharing information about your whereabouts with your parents. Generally this won’t be the case – any data your insurer does keep will be available to view on your customer portal online or in the app, and only the policy holder will have access to this.

Keep in mind that if you’re involved in a road accident your insurer may share data about your location with the authorities and any emergency contacts if you have one.

If your telematics device is a black box, they’re usually self-contained so they shouldn’t have any effect on your car. The same should go for an app on your mobile phone, however plug-and-drive devices that plug into your car’s charger or cigarette lighter might take up some of your car’s battery power.

Breaking traffic laws while driving a car with telematics installed will negatively affect your driving score, however insurers generally won’t immediately share this with authorities. However the police can request access to driver data by going through the courts, while insurers can also share if you give permission for them to do so.

Your telematics device won’t interfere with your car at all – this means it won’t control the radio, lights, wipers or heating.

Current devices don’t record audio in your car – only specific information about your driving such as speed and acceleration, how you take corners and the number of miles you drive.

Telematics devices can’t disable your car, and while many used to have curfews these are becoming less common. Driving during later hours can sometimes affect your premiums – it’s best to check with your insurer for their rules on night drives.

You won’t be restricted in how many miles you can drive in your car, but you will have to give an estimated mileage when you take out the policy – and the fewer miles you drive the less you’ll pay. However, if you do go over this estimate you might end up paying more in premiums.