Find out how to keep the cost of student car insurance down with a telematics policy.
Telematics, also known as black box insurance, is a great way for students to save money on their car insurance. Read on to learn more about black box insurance, how it works, and why it’s a great option for students.
What is telematics insurance?
Telematics insurance involves using an app or having a small device (known as a black box) fitted to your car, which measures the regularity and quality of your driving.
The aim of telematics insurance is to reward safe drivers with lower insurance premiums based on the risk of them making a claim. The black box can also place restrictions on your driving to reduce the chance of you having an accident.
Fitted black boxes can also act as a location tracker – this acts as a theft deterrent, and if your car is stolen it’s more likely to be traced and returned to you. Your premiums are likely to be lower as your car is considered to be safer.
Why is telematics insurance good for students?
Many students are looking to cut costs where they can, and a telematics policy can be an effective way to reduce the cost of insuring your car. In fact, drivers aged 17-21 with zero no claims — the typical age group for students — could save an average of £1,392 by choosing black box insurance over a standard policy (based on quotes generated by uSwitch between September and November 2016).
Student car insurance premiums are often high as they are considered a high-risk category (as they are often young or inexperienced drivers). Telematics insurance charges student drivers for the quality of their driving and the amount they drive rather than assuming they are high risk because of their age or experience.
Telematics insurance can be particularly beneficial for students who don’t drive their car very much. More than two thirds (67%) of students don’t bring their car when they move away to university, so only drive it during the holidays or when they are visiting home. Of those who do bring their car with them, most don’t drive it daily. With telematics you only pay for when you drive – that’s why it’s also known as pay as you drive insurance. With telematics there’s no worry of paying a set rate of car insurance for 12 months if you’re only going to drive it for a few weeks of the year.
What are the restrictions of telematics insurance?
Depending on the insurer and the individual policy, telematics insurance can come with some restrictions to ensure you drive as safely as possible.
Your black box will record the overall quality of your driving, including speed, harsh braking, and how quickly you take corners. Your insurer will increase your premium or charge you a ‘fine’ if you consistently demonstrate risky driving.
Your provider may also set restrictions on mileage, driving at night, and driving with passengers in the car in order to reduce the risk of you having an accident. Make sure you are clear on any restrictions before taking out your policy, as your insurance cost could be increased if you break the rules you agreed with your insurer.
You can get a quote for a telematics insurance policy below.