Compare The Box has published a new report on the increasing prevalence of black box or telematics insurance in the UK, and how this can benefit new and young drivers.
Portsmouth, Hampshire -- (SBWIRE) -- 12/18/2014 -- In the 21st century, data is everything. Data is changing the way we analyze risk and reward, how we derive insights about our behaviours, and increasingly how we drive and subsequently insurance policy rates. Telematics, or 'black box' insurance collects data about the driver as they are driving so that individuals can receive a personalized insurance rate based on their own driver behaviour. Compare The Box enables people to compare providers of telematics insurance, and has recently published a new editorial about how the use of smart phone apps to collect driving data can help young and new drivers lower their premiums rapidly.
The new article explores the nature of GPS data collection through smart phone apps and how these apps make telematics more accessible than ever, as drivers needn't install a dedicated and expensive tracking device into their car. The apps analyse how much they drive, how busy it is when they drive as well as their driving style to arrive at a more accurate risk analysis.
This democratizing effect of smart phones has already begun lowering telematics premiums even further for existing drivers, but offers a golden opportunity to young and new drivers to reduce their premium by having it based on the reality of their driving rather than a generalized idea of how young and new drivers behave.
A spokesperson for CompareTheBox.com explained, "The truth is that current insurance policy models use stereotypes of new and young drivers that may well not be accurate to the majority of people who are lumped into these categories. These stereotypes are generally considered a higher risk and come with a higher premium. Using smart phone apps to enable people to collect data on their driving habits and sending them to insurers will help people get an accurate quote for their own driving style, which will result in a cheaper policy for more people than ever."
About Compare The Box
Compare The Box is the UK's only car insurance comparison website dedicated to Telematics based or "Black box" insurance. It has the most comprehensive comparisons of all the main Black box insurance products on offer in the UK and it is just a matter of a click to get a quote for a vehicle. For more information please visit: http://www.comparethebox.com/