Motorists have been welcoming an extra passenger in their cars, a spy.
The spy, or telematics black box, is reporting back on when, where and how a car is driven and its saving motorists hundreds of pounds.
Research from the British Insurance Brokers’ Association shows that ‘black box’ motor insurance sales have increased five fold in the last two years, and are set to snowball to around 500,000 in the next two years.
BIBA says that the ‘black box’ technology, called telematics, can offer savings on motor insurance of around 25% to 30% and some young drivers can save up to £1,000.
The technology works by recording journeys or driving behaviour so that premiums can be accurately applied to a driver’s exact risk profile.
Leighann Forsyth, BIBA’s Head of Communications, said: “The dramatic increase in black box technology follows the rising cost of premiums for young drivers, the decreasing cost of technology, and new product availability from insurance brokers.”
BIBA also said that women, who are likely to see an increase in motor premiums later this year due to the European gender rating ban, could benefit from reduced premiums from telematics.
In a separate report, insurance company Confused.com says competition for business has also driven down premiums over 7% and 21 year olds are enjoying a 10% saving compared to a year ago.
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