Over half of all drivers expected to switch to telematics by 2017
57% of drivers believe they will switch to a black box insurance policy by 2017. The study into the relationship between driving habits and insurance found that a wide cross-section of motorists are open to the idea of pay-how-you-drive-based car insuranceGocompare.com survey, February 2012
What's the thinking behind pay-as-you-drive insurance?
Most insurers currently price policies based on a series of generalisations around claims experience, location, age, sex and the type of car. Most don't consider an individual's actual driving habits until they have built up a record of safe, claim-free or incident-free driving over a number of years and have subsequently earned a no-claims discountScott Kelly, Gocompare.com
Pay-as-you-drive insurance benefits good drivers
Simply on the basis that these motorists are happy to have their driving monitored suggests they're probably decent drivers. After all, you're not going to sign up for this product if you repeatedly and knowingly break the law, or drive haphazardlyPenny Searles, director of Wunelli
Pay-how-you-drive can educate inexperienced drivers
Young drivers can use it as a mentoring and development tool, plus the presence of the box can help alleviate peer pressure. If you've someone in the passenger seat urging you to drive faster, it's not a big deal to say 'I can't, I've got an insurance policy that looks at my driving'Penny Searles, director of Wunelli
Get the insurance price that your driving deserves
(The insurance policy from Insurethebox) gave me the unique opportunity to prove myself on the road. It gives the driver the opportunity to break away from the stereotypes that exist around young drivers. My driving habits are picked up by the black box, and, dependent on my driving, I get a quote that mirrors this behaviourTom Mcluskey, young driver from Romford
Tracking device a bonus for customers
The tracking device really swung it for me, it's something that would normally cost hundreds of poundsAlex Crooks, web developer from Portsmouth
Why choose Gocompare.com for telematics car insurance?
Telematics car insurance - also known as black box insurance, GPS car insurance, smartbox insurance, pay-as-you-drive insurance and usage-based insurance - works either through a small black box device that is fitted to your car or a mobile phone app which can collect the following type of information:
Regardless of gender, a pay-how-you-drive-based policy may be the quickest way for a sensible young driver to reduce their premium
- The speed that you drive
- Braking and accelerating habits
- Distance travelled
- Time of day that you travelled
- Types of roads you travel on
Furthermore, the black box or smartphone app acts as a tracking device, so if your vehicle is lost or stolen, you (or the police) can find it sooner.
Not all insurers will monitor the same things, and the way they handle the data and allow access to it can also differ. In order to help you find the right policy for your needs, we've put together guide pages on some of the telematics insurance brands that we compare in our car quotes process.
In the quotes process itself you will have the option of separating dedicated black box policies from traditional car insurance options, again giving customers the ability to compare specific details of the pay-how-you-drive deals. You will also have the option of comparing telematics quotes with standard quotes to assess whether a black box could be a sensible choice for your insurance requirements.
Did you know...?
- Black box insurance has been on the UK market since 2008
- First-time car insurance customers saved an average of £821 with insurethebox usage-based policies
- The Co-operative estimates pay-as-you-drive customers will save £20m in the period 2012-15
- 92% of drivers think that their car insurance premiums should be based largely on the way they drive
- 57% of drivers believe they will switch to such a policy by 2017
- 59% of over 55s would consider a switch to usage-based insurance by 2017