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Is telematics insurance right for me?

Feb 10, 2021

There are various ways insurers can determine your car insurance premiums. They can look at your postcode, driving experience, no claims record, and job title. This is all relevant data, but it’s not specific to you as a driver.

Telematics insurance helps personalise your car insurance policy. Also known as black box insurance, it involves adding a small device to your car which records how you drive. By tracking exactly what happens when you’re out on the road, your insurer is able to use real-life data to assess how safe and careful you are behind the wheel. Your premium can then be tailored to suit you, rather than just the average driver.

In short, telematics is perfect for anyone who wants to control their car insurance costs.

Who can benefit from this kind of insurance?

Telematics or black box insurance might be suited to some drivers more than others. The question is, is it right for you?

Here’s our guide to who could benefit from taking out this type of policy.

Young drivers

The group most associated with this kind of car insurance is young drivers. The first few years on the road can be pricey when it comes to insuring a vehicle. They can also be dangerous. According to road safety charity Brake, over 4,000 young people are killed or seriously injured in road traffic accidents in this country every year.

If you’re aged 24 years or under, black box insurance can make a huge difference to your finances. Whether you’re saving for a house deposit, having to pay rent and bills, and taking on more financial responsibility for your own welfare, telematics insurance has become increasingly popular with younger drivers.

Young people generally earn a lower wage compared to their older, more experienced colleagues, so small savings can make a big difference. Many policies are designed with this younger age group in mind, and the savings can build up over time.

Telematics or black box insurance might be suited to some drivers more than others. The question is, is it right for you?

A young driver sitting behind the wheel of a car smiling as she drives
Learner drivers

If you’re looking for a group of people most likely to be involved in a traffic accident, learner drivers have got to be high on the list. Getting behind the wheel of a car for the first-time can be an exciting – and nerve-racking – experience. Which makes having learner driver insurance all the more important.

Whether you’re taking lessons in your own car or the car of a friend or family member, having insurance is a must. Not only can it help reduce some of those nerves while preparing for your driving test, having black box insurance means you gain valuable on-road experience while protecting a car owner’s no claim bonus if you do end up having a prang.

There are different car insurance policies for learner drivers – annual, short-term or named driver insurance. Having a black box can help make these initial costs more affordable for you.

People with high-risk professions

It’s well known that car insurance providers ‘prefer’ some job titles more than others and adjust their premiums accordingly. According to research by van leasing company Vanarama, the most expensive professions for car insurance include chefs, hairdressers, delivery drivers, social workers and fitness instructors. At the other end of the scale, mechanics, financial analysts, engineers, commercial managers and administrators may pay less for their car insurance premiums.

The truth is, in most situations, your profession bears little impact on your skills as a driver. Telematics insurance gives you the opportunity to demonstrate just how safe and responsible a driver you really are – whatever job you do.

You may not be able to avoid driving at busier times or late at night, but you can use less busy roads, keep your mileage low, and take a measured approach to braking, accelerating and cornering. All of these factors will be taken into consideration when you have a black box – also known as a Smartplug – and could help reduce the cost of your car insurance.

The most expensive professions for car insurance include chefs, hairdressers, delivery drivers, social workers and fitness instructors.

A chef working in a busy kitchen
People who drive powerful cars

The larger the engine of your car, the more expensive it is likely to be to insure. Depending on the insurer, the difference between a 1.9- and a 1.4-litre engine can be as much as £1,000. That’s because insurers see more powerful cars as statistically more likely to be involved in an accident. And if you’re a new driver behind the wheel of a fast car, the stats really are stacked against you. Insurance companies also consider ease of getting replacement parts for a car and whether a car has been modified.

Of course, just because you own a fast car, doesn’t mean you drive it fast. With telematics insurance you can prove to your insurer that you keep to the speed limit and don’t drive erratically or dangerously.

Families looking to budget

Having car insurance that reflects your personal driving style can also help families keen to make savings where they can. If you have a young family, you may be looking to move from a rental flat into a house, live in a right-to-buy property, or want to put your money into your starter home mortgage rather than car insurance premiums.

Whatever your situation, telematics can help bring down the cost of your car insurance, giving you extra cash to spend elsewhere.

Having car insurance that reflects your personal driving style can also help families keen to make savings where they can.

A family smiling and laughing during a car journey
People with previous convictions

This type of car insurance can also help if your vehicle is lost or stolen as the black box acts as a tracking device allowing police and emergency services to locate you quickly. Equally, if you have a previous driving conviction, you could find this type of  insurance helps you save money on your insurance premiums.

Save money on your car insurance

At Smartdriverclub Insurance, we want more people to understand how a Smartplug could help them save money. It’s easy to use and will start monitoring your driving as soon as it is installed.

Not only will this help you get a great price on the cost of your car insurance renewal, it will also give you access to crash assistance, theft tracking, and MOT and TAX reminders.

Think you’re a careful driver and want to see what you could save? Find out more about how our insurance works, and get a free quote today.