Telematics insurance, or little black box insurance as it's also known, has been around in the UK since 2008, but has soared in popularity in recent years.
Recent figures show that telematics motor insurance is rising in popularity. One reason, as explained by Holly Black in this article, is that the cost of car insurance has risen sharply for young drivers and telematics can offer a discount for safe driving.
As detailed in our European Motor Study, we believe there is huge potential for telematics-based motor insurance in the UK. However, for this potential to be realised, motor insurers would need to use telematics to offer value added services in addition to premium discounts. In the study we ranked the extent to which customers want 17 such services, ranging from roadside assistance to cinema tickets for safe driving to comparing driving with friends. You can see how each of these services scored on page 19 of the report.
Would you let a car insurer spy on you to get cheap cover? More and more drivers do - but it means signing away your privacy