A telematics tracking system, also known as a black box, is a device installed in a car as part of a chosen insurance policy that records and transmits data about the vehicle’s location, speed, and driving behaviour.
This tracking device is usually installed under the bonnet on your car battery, but some insurers now ask that you install a plug-in on your dashboard or download a smartphone app instead (or a combination of these). Some particularly cautious insurers may also ask you to install a dashcam on your windscreen as part of your black box policy.
So, are you considering a black box policy? Here’s a simple breakdown of how a telematics box works:
- Installation – The telematics box is installed in the vehicle. The insurer or manufacturer sometimes installs the black box, but policy holders are now often asked to do the installation themselves following sent instructions.
- Sensors – The box includes sensors that can detect the vehicle’s location, speed, acceleration, braking, and other driving behaviors.
- Data recording – The box records the data from the sensors, usually on a continuous basis.
- Data transmission – The box transmits the recorded data to a server or database via a cellular network or satellite link.
- Data analysis – The recorded data is analyzed to assess the driver’s behavior, such as how often they brake hard or how frequently they exceed the speed limit.
- Feedback – The driver may receive feedback on their driving behavior, such as through an app or dashboard display. This feedback can help them to improve their driving and potentially lower (or raise) their insurance premiums.
A black box insurance policy can be a good option if you’re a safe and responsible driver who is looking for a way to lower your insurance premiums.
However, it’s still important to shop around and compare policies from different insurance providers to find the best option for your needs and budget.