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Telematics insurance
Telematics insurance, sometimes called black-box insurance, uses information about how a vehicle is driven as part of the policy. Here is how the approach usually works.
How black-box cover works
An insurer may use a device fitted in the vehicle, a connected device or a mobile app to collect driving information. The collected data is considered alongside the other details used to arrange and manage the policy.
The device or app requirements vary. Before choosing a policy, check how it is fitted, what happens if it stops working and whether there are rules about using or carrying a phone while driving.
What driving information may be used
Depending on the policy, information can include speed, braking, acceleration, cornering, time of day, location or mileage. The insurer should explain what is collected, why it is used, how long it is kept and how it can affect the policy.
Read the privacy information and policy terms carefully. They should also explain any alerts, reviews or consequences connected with the driving data.
Who might it suit?
Telematics cover may suit drivers who are comfortable sharing driving information and meeting the policy requirements. It can be worth comparing with non-telematics cover, especially if the car is regularly used at different times or by several drivers.
The right choice depends on the individual policy, driver and vehicle. Compare the cover, total cost, data use and any conditions before deciding.
Milewisp guide
Go deeper before renewal or a claim.
The 27-page digital Plain-English Car Insurance Guide brings together the terms that can be hardest to compare: excesses, no-claims bonus, cover types, add-ons, telematics, renewals, and how policy wording can affect reduced or refused claims.
- Excesses
- No-claims bonus
- Cover types
- Add-ons
- Telematics
- Renewals
- Reduced or refused claims
Educational information only. The guide does not replace insurer documents or policy wording, and it does not guarantee cover or a claim outcome.
Read the guide on Etsy (opens in a new tab)