Car insurance companies have a new guardian angel to help them give the right premiums to the right drivers. The telematics system, popularly known as the black box, is the new assistant that every insurer would be looking to load up on their policyholders’ vehicles.
Black box technology is spreading quickly throughout the country, and with good reason. It seems to be the final fair deal for both insurers and policyholders, at least those who drive responsibly. The black box will be installed inside your car to pass on a constant stream of information to your insurer on the way you’re driving. This includes your speed, acceleration, braking and the time when you drive as well. If you’re the kind that goes out drinking every Friday night at 2 am and races with the mates on the way back, you can expect to pay the price in your next car insurance bill.
Now, with this kind of technology inside vehicles, insurance companies can straightaway know who the good drivers are and who deserve a fat excess on their premium. Honest, safe drivers can finally compare car insurance prices, knowing that they will get their due in the form of cheap car insurance premiums.
Also, with black box technology installed, female drivers stand to save hundreds of pounds worth of insurance expenses. Until recently, women have enjoyed lower premium rates than their male counterparts. However, with the recent ruling by the European Court of Justice, stating that male and female drivers must be subjected to equal premium prices, women drivers have been shunted into the general compartment along with their male peers.
Now, the statistics have shown that 92 per cent of all driving convictions involve men, as do 98 per cent of all dangerous driving convictions. Taking the numbers into account, women deserve cheaper rates of car insurance premiums. But with the latest ruling, all that has been rendered moot.
However, with the black box technology set to invade UK, women drivers stand a chance of getting back to the original status quo.
With the present ruling in effect, women under 45 will have to shell out an additional £920 million per year, whereas men’s premiums will be reduced by a healthy £620 million. Meanwhile, women under the age of 25 will see their premiums rising by a quarter, whereas men of the same age will pay 10 percent less.
According to a spokesperson for a prominent car insurance company, “Women have traditionally enjoyed lower premiums than men because they make fewer claims and, statistically, are generally less aggressive when they drive.”
So, a telematic system such as a black box will end up helping women considerable in reducing premiums. Although only a handful of insurance companies have offered black box insurance till now, the number is slated to increase as the word spreads.