What is Telematics?
Telematics is a way to measure your driving. It's a black box or mobile phone app that monitors how fast you drive, how quickly you brake, and whether you're generally a safe driver.
Sometimes known as black box car insurance, GPS car insurance or smartbox insurance, telematics is a way for some car insurance companies to see how 'risky' you are as a driver. The information can be used to give you an insurance quote, with a price that reflects your driving style.
It’s often a way to help young or inexperienced drivers get cheaper car insurance. Whilst telematics could lead to potential savings for inexperienced drivers, responsible drivers may find themselves altering their driving style because they have a black box.
At LV=, we take into account lots of different factors to give you the best price for your cover.
We know what you're thinking, how does this work?
- Mobile phone app
An app you download onto your smartphone
- Telematics black box
A small black box fitted inside your car
- Plug in box
Fitted to your On Board Diagnostic port (OBD)
All three monitor your driving habits, enabling the insurer to either adjust your premium accordingly, or offer you incentives for what is perceived as safe driving.
What is monitored through a telematics device?
It does vary depending on which insurer you use. Typically the following factors are monitored:
- Number of miles driven
- Time of day that the car is used
- Areas that you drive through
- Driving technique, including maximum speed
- How quickly you brake
- How you take corners
Find out how we calculate the price of your car insurance
We offer comprehensive car insurance cover. This short guide explains how we work out the price of your car insurance.