What is an auto insurance black box?
An auto insurance black box (also known as telematics or pay as you go car insurance) is when you car is fitted with a device that records things like driving speed, distance and what time of the day your driving. This device is referred to as a black box device. The black box device also monitors things like braking distance, how you corner, where you are traveling, and the distance you travel. All these things will determine the rates you get for your car insurance. In exchange for signing up for a black box insurers offer discounts based on how safe you drive and they use the information provided by the black box device installed in your car to figure this out. Some companies are even offering sign up discounts to people as an incentive to get them to sign up for this feature. Some companies are claiming that by having a black box device in your car you can get discounts of up to around 25 percent if your a good driver. Some companies will even allow people to download their driving data so they can see how well they drive which can help them try to improve the way they drive. The black boxes can also be used against you in court as evidence because auto insurance companies can be required to hand over black box information to the courts. An example of a company offering black box insurance is Ingenie, it looks like they plan on partnering up with companies like Aviva. Companies like CAA, Allstate, RSA, and Industrial Alliance have also began offering the use of black box devices.