Telematics- The future of driver insurance

As in-car technology evolves with the increase of electric, smart, autonomous and connected vehicles, experts across the automotive and insurance industries are predicting that telematics ‘black box’ insurance will become the standard, rather than an option in the future of car insurance.


It is well documented that telematics technology offers many advantages to insurance companies including monitoring driver behaviour, theft tracking and reducing loss ratios. Our market leading platform also offers an AI crash algorithm that can pinpoint and map out how a traffic incident has occurred. Along with all of these benefits the automated telematics systems make the claims process much easier to manage reducing, disputes and lengthy processes.


With all of these benefits it is surprising that telematics uptake hasn’t increased faster than the historic rate. 


The many reasons for the slow uptake in black box policies is twofold:

  1. Public perception – Many drivers have misconceptions about the technology and policies and are concerned about being continually tracked whilst they drive. 
  2. Specific drivers only – Many believe that telematics policies are only relevant for certain driver groups and not something that is available or beneficial to all. Historically this was often true with insurers pushing policies on young drivers and drivers with multiple claims or conviction offences.


Fortunately, many of these misconceptions and concerns are no longer obstacles as we become more accustomed to technology working seamlessly in our day to day lives. From smart devices, GPS and in car upgrades we are becoming more used to be connected and monitored. Many new vehicles also have telematics devices fitted as standard, so tracking and monitoring of driver behaviour is becoming much more accepted and normal. 


A recent report by the RAC highlighted that vehicle theft had increased by over 50% in 2019 and this will impact the insurance industry as more expensive theft claims will undoubtably drive up the price of insurance. This will see more drivers turn to telematics to keep their costs down and to help them take control of both their policy and vehicle.


The future of telematics is set to become one where these policies aren’t described as ‘telematics’ or ‘black box’ but will just be ‘car insurance’, as the industry catches up to the technology available and adopts it to reduce claims and overhead costs.




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