FAQ - What is Telematics



  1. What is telematics?
  2. How does a telematics policy differ from a traditional car insurance policy?
  3. Who might telematics suit?
  4. What are the benefits of telematics?
  5. How can I save money with telematics?

1. What is telematics?

Telematics is the technology of sending, receiving and storing information using telecommunications and informatics.  Sounds complicated?  It really isn’t.  With telematics, you prove what a good driver you are to pay less on your car insurance by having a telematics device or Black Box (we call it a Model Driver Black Box at Model Driver) fitted in your car.

In a nutshell...

  • By having a Model Driver Black Box installed in your car you’ve already taken the first step towards being in control of what you pay for your car insurance.
  • It is great news for so called ‘high risk’ drivers facing a hefty premium - particularly young or inexperienced drivers.
  • A Black Box is fitted into your car so that when, where and how your car is driven can be monitored 24/7 using GPS.
  • Insurers will monitor different things such as speed (are you keeping to the limits?), braking (controlled or jerky?), acceleration (smooth or erratic?), Night-Time Driving, total mileage, the type of journeys you make etc.
  • You’ll be given a score which reflects how your car is driven.
  • If you drive well, you could be rewarded with money back on your premium.  Drive poorly and you could see your premium rise.
  • You will be able to review and analyse how well you’re driving using an online dashboard and then can look to tweak your driving habits to improve your score.
  • At renewal, a high driving score could result in a lower premium and you’ll build up a No Claim Discount as usual.

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2. How does a telematics policy differ from a traditional car insurance policy?

With both types of policy your initial premium is calculated in exactly the same way.  Insurers will take account of a number of so called ‘risk factors’ – your address, age, driving experience, value of your car, claims history, convictions and so on – to generate a premium and then adjust it depending on your No Claim Discount. 

With telematics, just by having a Model Driver Black Box installed in your car, you've already taken the first step towards being in control of what you pay for your car insurance and you have the ability to get money back during your policy year by proving how well your car is driven.  You still build up a No Claim Discount as you would with a traditional car insurance policy and your actual policy terms will be the same or similar.  

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3. Who might telematics suit?

Telematics policies tend to suit drivers who are facing hefty car insurance quotes.  So that’s young drivers, inexperienced drivers looking to build up a No Claim Discount or perhaps drivers deemed high risk due to their poor driving history. 

When gender-neutral pricing was introduced on 21 December 2012, women faced hikes in their premiums.  Women, particularly young women, opting for a telematics policy have the opportunity to be rewarded for driving well and ultimately end up paying the premium that they deserve.

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4. What are the benefits of telematics?

The main benefit is that you could save money on your car insurance.  By having a Model Driver Black Box installed in your car you’ve already taken the first step towards being in control of what you pay for your car insurance and if you (or anyone else who drives your car) drive well, you could be rewarded with money back on your premium.  The Model Driver Black Box acts as a Theft Tracker to help locate your car if it is stolen too.  

Also, you have the ability to review and analyse how well you’re driving using an online dashboard to help you fine-tune your driving style and break any bad habits behind the wheel.

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5. How can I save money with telematics?

When it comes to the amount of money you pay for your car insurance premium, you’re firmly in the driving seat when it comes to telematics!  First off, by having a Model Driver Black Box installed in your car you’ve already taken the first step towards being in control of what you pay for your car insurance.  You can even further reduce your premium by proving how well your car is driven throughout the life of your policy.  Your driving is scored on a daily basis.  The higher the score, the better your driving and the more money you could save on your premium. 

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