The structure of black box car insurance

The structure of black box car insurance

Black box auto insurance is also called telematics and is a type of policy to calculate insurance premiums based on driving method. Your car has a GPS box installed, you can send information to your insurance company and measure your performance behind the car. Some providers can use the smartphone app instead.

How does the insurance company measure your driving?
Individual insurance companies have little or no difference in the indicators to judge whether you are good or bad, but in most cases the following will be taken into consideration:

• Breaking (sudden braking wears)
• Cornering (take a corner gently)
• Consistent steering (no sudden change of direction)
• Speed ​​(stay within limit)
• The time you drive (night driving is considered more dangerous)
• Low mileage (normally, mileage is low, insurance premium will be lower).

How do insurance companies reward good driving?
The way you get reward depends on the type of policy you have. Discounted policy, if any, will be repaid as a discount on a monthly, quarterly, or renewal basis. Often mileage restrictions apply, mileage-based policies often incur bonus miles as a reward to be paid back every month or quarter.

But when you drive badly there are also punishments. Some providers will raise insurance premiums, and if performance is bad or arrested frequently beyond the speed limit, you can cancel the entire amount of insurance money.

How can I monitor driving?
The black box insurance company sends frequent feedback, monitors driving performance, and selects the tendency to affect the method of calculating insurance premiums. This feedback can be accessed online. Some providers offer smartphone applications and can also access driving data.

How is the box installed?
If your provider does not provide smartphone applications, you need to install GPS tracker in your car. The tracker is around the size of the packet of cigarettes and is attached behind the dashboard.

This box does not affect the performance of your car. It is always on. It is sealed and can not be modified to prevent tampering.

Normally there is no initial cost to install GPS tracker, but if you need to transfer a box to another vehicle or you need to turn off the device judging that black box car insurance is no longer needed If you can, or you can remove it from your car.

What kind of documents do I need to display the installer?
There are some important information that you need to display in the installer to install the GPS box. They are:

• If you are waiting for your driver's license or your license, a certificate certifying that you passed
• V5C (logbook) showing evidence of car ownership and possession history
• If you are still waiting for V5C, check the purchase of the car from the dealer
• If this is relevant evidence of no claim discounts from previous insurers.