Many people find it unfair that the cost of their car insurance is based on generalised statistics. In an age of increasing personalisation, the thought that you’re paying too much for your insurance because other people don’t drive safely doesn’t sit right.
Fortunately, the rise of telematics car insurance means that fully licensed drivers can get premiums tailored to them based on how they perform behind the wheel.
For those who consider themselves to be safe drivers, telematics insurance is very appealing, but can it lower your insurance premiums? Well, that depends.
What's telematics insurance?
For those who don’t know how telematics car insurance works, here’s a quick rundown.
To get started you’ll need a device to record your driving data. There are typically three options:
- Professionally installed black box
- Self-installed plug-in
- Smartphone with telematics app
These devices will record your driving speed, acceleration, braking, journey length, and so on.
Your insurer analyses your driving data and can then adjust your insurance premium based on your performance. The safer you drive, the more likely you are to be rewarded with a discount on your renewal premium.
You can keep tabs on your driving data by logging in to the website or using a mobile app. This means you can see how you’re really driving, instead of how you think you’re doing. The information may surprise you.
Lowering the cost of your insurance
Telematics insurance is usually suitable for drivers aged 25 or under, with younger or newly qualified drivers standing to save the most versus a regular policy.
For more experienced drivers who have a substantial no-claim discount, the savings from choosing telematics car insurance will typically be much less. By having claim-free years, you’ve proved you’re safe, but telematics may help you save some money off your premium if you’re a genuinely safe driver.
Car insurance is becoming more personal thanks to telematics, and by offering people the chance to pay based on how they drive, it’s becoming fairer too.