UK law requires motorists to have at least third-party liability insurance. A car insurance policy covers you and your vehicle. The amount of coverage varies from company to company, meaning the benefits included and monthly premium rates rely on various factors. These include your age, location, driving history, claim records etc. Remember, your gender and health history do not affect your premium rates.
Have you heard of Telematics Insurance?
Unlike standard car insurance policies, Telematics, also known as Black Box Insurance, is an insurance policy that requires the insurer to rely on in-car tracking devices. That way, the company tracks, monitors and evaluate your driving habits.
Telematics is devices that track different aspects of your car, such as speed, mileage, and total driving time. The insurance company consider these factors to determine your insurance premium rates. Read on!
How Telematics Car Insurance Works?
Telematics insurance uses a cutting-edge technology device. When you apply for this type of insurance policy and the insurer approves your application, the staff will install a Black Box device within your vehicle. The Black Box is about the size of a matchbox installed behind your car’s dashboard. Most drivers don’t know the location of the Black Box.
The Black Box activates the GPS when you drive your car. The device sends specific information to the insurance company about the car’s speed, acceleration, cornering, and braking. That way, the company determines whether you drive your vehicle safely.
After evaluating your driving performance, the company provides you with a Driver Score. Bear in mind that this score changes every time you drive your car based on the speeding, braking, and other information that the Black Box sends to the company.
Drivers in the UK should track and evaluate their rides through a web-based portal or mobile app provided by the insurer. The purpose is to check your driving performance and see where you might have made mistakes. Thus, you can improve your driving and attain a better Driver Score, reducing your monthly premium rates.
Bear in mind that the Black Box Device installed within your car will monitor it 24/7, no matter who drives the vehicle. It does not depend on the driver, but the Score determined based on the factors above. Therefore, you must not allow other people to drive your car to reduce the risk.
Who can apply for Telematics Car Insurance?
Many drivers in the UK usually ask this question. The answer is: anyone who has a UK driving license can apply for this type of policy. For instance, you can consider telematics insurance once you have passed the driving test.
If you fail to pass the test, you can consider applying for a specialist insurance policy. It is a policy that provides coverage to learner drivers. People with no or limited driving experience can also apply for Telematics insurance.
Final Words
Experts argue that a Telematics insurance policy is slightly expensive for frequent drivers. The reason is that this type of insurance policy encourages low mileage, meaning if you make long trips or drive a lot you may end up paying higher premiums.
I had considered this type of insurance before. I thought it was a good way of saving money but as I looked into my options, I realized I would quickly end up paying more. While I do not drive daily or even weekly, when I do drive, I drive long distances. Also, my brother put me off from using trackers. Supposedly they sell travel data from their tracking devices to other companies. No thanks!
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