Telematics, also known as “black box”, is an informative piece of equipment installed in cars to allow insurance companies to analyze the driver’s actual habits – when, where and how they drive – rather than relying on statistics about specific age, gender, and type of car driven to judge how decent of a driver their customer is.
Over 12 million drivers already practice a usage-based insurance (UBI), and Ptolemus Consulting Group estimates that UBI will expand to nearly 50 percent of the world’s vehicles by 2030; the number of countries it’s used in has already doubled since 2014.
How Does it Work?
The telematics box has a SIM card inside, just like your Smartphone, to track the following data:
By measuring this data, insurance companies may lower the rates of safe drivers and also offer customers bonus miles each month. Insurers can calculate how well you personally drive rather than estimating your “risk” based on history and/or age and gender stereotypes. UBI allows cheaper insurance for good drivers.
A website portal is given to each customer for them to log on and see their own driving habits. The customer can choose how much information the insurance company can actually see; companies often offer clients the ability to opt out of location tracking, and also have the option of turning the black box off after six months of use and still maintain savings.
It Will Change Your Everyday Drives!
The black box encourages people to drive safer with saving money as an incentive. Additionally, the black box optionally alerts drivers when they are engaging in dangerous behavior, to ensure the safest driving habits are practiced.
Many companies are already utilizing this helpful device in order for their customers to be charged fairly and precisely according to their driving skills and how much they drive:
Certainly, you will hear more about UBI in the year of 2016, and might install your own black box to save money in the long run!
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