Many people find it unfair that their car insurance premium 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 licenced drivers have the chance to 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.

Telematics 101

For those who don’t know how telematics car insurance works, here’s a quick rundown:

You plug a small black box into your car. This takes a few minutes and requires no special skills at all.

The black box records data about how you drive, taking into account speed, acceleration, braking, journey length, and so on.

This information is then relayed to your insurer and they can adjust your premium based on the data. Drive sensibly and you’ll be rewarded; drive like a boy racer and you’ll see the price soar.

You can also keep tabs on the data by logging into a website or using a mobile app. This means you can see how you’re really driving, instead of how you think you’re driving. And the information may surprise you.

Driving down premiums?

Telematics insurance definitely offers savings to drivers, but remember it all depends on how you drive. Younger or newly qualified drivers stand to save the most - a large number of younger drivers find that if they can drive sensibly, they can make significant savings.

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 have proved you’re safe, but telematics may help you shave 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.