'Black box' helps to cut accident figures by a fifth
Telematics is reducing the cost of premiums as well as making the roads safer for motorists.
A little black box that sits in your car and uses satellite technology to discover how well you drive has had a dramatic effect on accident figures.
Analysis of 10,000 claims has revealed that drivers with telematics insurance – which uses the black box – are 20 per cent less likely tohave a car crash than those with standard insurance.
The boxes are normally aimed at young drivers for a simple reason – the information gained from them can help insurers reduce the cost of premiums. That's particularly useful for teenage drivers who have no track record and usually attract very high premiums because of the high number of accidents recorded by those in their age group.
A 17 to 22-year-old driver is often charged thousands of pounds for cover. But by using telematics, motorists are rewarded for good driving habits by lower premiums or cashback. The black box analyses speed, cornering, braking, acceleration and the time of day the car is driven, to spot better driving habits.
Co-operative Insurance launched its Young Driver scheme a year ago and it has run the rule over 10,000 claims it has received since. It says the data proves that as well as having fewer car crashes, young drivers with a black box are involved in less-serious road accidents. The cost of a typical insurance claim from a customer with the box is 30 per cent less than from a customer without.
The AA launched its own telematics cover in January, and other firms are turning to the benefits it offers. The chief attraction is that it allows insurers to offer individual pricing, rewarding those who are sensible behind the wheel.
For that reason, it could help women drivers who face insurance hikes later this year. From December, a new EU ruling will ban insurance companies from charging insurance on the basis of sex. It means women drivers – who at present pay less because of their better claims record – will be forced to pay as much as men. "This isn't fair as women are statistically safer drivers than men," said Amy Kilmartin, manager of the Young Driver Insurance scheme at the Co-op. "But if they use black-box insurance, they can prove they are safe drivers and get cheaper insurance as a result."
In short, safer drivers will be the ones who benefit from having the black box in their cars. Along with the Co-op and AA, it is offered by specialist firms such as Young Marmalade and Insurethebox.
They were joined last week by Autosaint, which claims its premiums are up to £1,900 cheaper for young men and £600 less for young women when compared with the average car insurance premium.
"We believe young motorists' premiums should be calculated based on how safely they drive and not how much of a perceived risk their sex suggests they might be," said Stuart Whalley of Autosaint.
The Co-op's director of general insurance David Neave said more firms should use telematics. "It would be great to see more insurers follow suit. Telematics has a key role in cutting insurance costs and avoiding creating an uninsurable generation."
Simon Read: Frozen in time - the expat British pensioners who deserve a better deal
Bargain Hunter: From The Outsider to 1984, catch a cut-price classic, read it in the rye
Donald MacInnes: My wasted hours in the retail deserts of Dixons-Carphone
Money Insider: Smart alternatives to the pensioner bond
Bank-beating exchange rates on your international payments
- 1 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 The enemy within: People who hear voices in their heads are being encouraged to talk back
- 4 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
- 5 SAG Awards: Fake applause track interrupts Reese Witherspoon
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
Day In a Page
Hibernate during winter and make your living during the summer at this busy guesthouse with panoramic sea views, in the village of Lynton
A four-bedroom penthouse next to the Tate with direct views of St Paul's from two floors of luxurious living space
A four-bedroom detached home surrounded by spacious gardens and woodland, close to New Pudsey
An 18th-century, three-bedroom home near Langstone Harbour built from ships beams with vaulted ceilings and wood burning stoves
A five-bedroom semi-detached home with a mix of period and modern features in a popular and convenient location
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A deceptively spacious, beautifully presented Georgian home with 3000sq ft of living space and five reception rooms
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village