Telematics car insurance is growing in popularity and the growth is expected to continue in the coming years. More drivers are becoming aware of the product and as more information is released about the benefits of telematics car insurance consumers are growing more confident in the product. According to a report from ABI Research the number of global telematics car insurance users will grow from the 1.85 million users in 2010 to 89 million users by 2017.

Dominique Bonte, group director, telematics and navigation, said “While insurance telematics or usage based insurance (UBI) is far from a recent phenomenon – US-based Progressive was already trialing solutions back in 2002 – a renewed interest in this market has occurred over the past two years, with an acceleration in uptake, as well as a dramatic change in the very nature of UBI, migrating from pay as you drive (PAYD) to pay how you drive (PHYD) based on continuous driver behaviour monitoring and analysis.”

Young drivers and female drivers are being encouraged by experts to jump on board and seriously consider a telematics based car insurance product. Both groups are subject to rising or very expensive car insurance premiums and could save by making a switch to a telematics car insurance product.

Young drivers are traditionally charged expensive rates and black box car insurance can offer an opportunity to cut their premiums. Female drivers are being impacted by a new EU ruling that prohibits car insurance providers from using gender as a risk assessment factor. Despite the ruling not going into effect until December providers are already increasing rates for female drivers.

There are very good telematics car insurance policies available that will assist drivers to save on car insurance expenses. An online telematics car insurance comparison site can be helpful to a driver looking to switch and try a new telematics car insurance policy.

There are many benefits of black box car insurance besides saving money when compared to conventional car insurance costs. Young drivers with black box car insurance are being reported as 20% safer than those without the product according to a study by Co-operative Insurance. Some black box car insurance policies have benefits that are specific to their brand such as parental notification of a driving incident deemed unsafe and the ability to review collected data by the black box unit online. One benefit offered by the majority of black box car insurance providers is car theft tracking.

Black box car insurance involves the use of a GPS unit installed into the car’s dashboard to record the driver’s habits and skills while on the road. This GPS unit is so precise and state of the art that it can detect quick braking, speeding, and taking corners too quickly. The same unit can also detect where the car is at any time. This is an added benefit if the car happens to get stolen and one that is usually a free benefit of choosing black box car insurance. The providers that state their product involves theft tracking will work with authorities to help recover the car if stolen.

There are many benefits to choosing black box car insurance. In reference to AA black box car insurance product Drive safe, Simon Douglas, director of AA insurance said, “It is likely to appeal to inexperienced drivers as well as parents, whose youngsters have their first car. Parents know driving behaviour is being tracked by a system that also provides crash, breakdown and theft alerts.”

Black box car insurance should be a consideration of all UK drivers but especially those that are safe drivers or know they can follow safe driving habits. The reason that this product is best suited to safe drivers is that it offers those that are disciplined on the road the opportunity to save money on their premiums. Black box car insurance providers determine risk and cost according to how safe the driver is on the road versus usual criteria such as gender, age, or occupation.

Through the installation of a small GPS unit into the dashboard of the car, data can be collected on the driver’s habits. It will collect data such as when the driver is on the road during the day, how fast they drive, and how well they stick to safe driving habits. By keeping off the road during peak accident times such as late at night, adhering to speed limits, and refraining from taking corners quickly or braking hard a driver can prove they are less of a risk and worthy of cheaper car insurance rates.

Black box car insurance is simple to purchase as it is easily found online and free quotes can be obtained from many providers. There are black box car insurance comparison sites available that can assist a driver in choosing the right policy for their needs. Once the policy is purchased the driver can print off paperwork on their home printer and the installation of the black box unit is handled through the provider. The provider will coordinate the professional installation of the unit with the installer and the driver. Most offer the installation service to be done at either home or work while others will offer a convenient location to the driver’s residence for installation. At the moment of the installation the unit begins collecting data and helping the driver to save money.