Telematics insurance, often called black box car insurance, is a type of policy where a device is installed in a vehicle to track driving behaviour. This device, or ‘black box’, monitors factors like driving speed, time of day, and location, providing a detailed picture of an individual’s driving habits.
By analysing this data, insurers can assess a fleet’s compliance with road safety rules and driving best practices, enabling them to offer fleet managers a more personalised renewal quote based on their drivers’ performance.
When a telematics insurance policy is purchased for a fleet, the insurer will fit a black box to each vehicle. This device then collects data on various aspects of vehicle usage, such as the times and places an employee drives, their typical mileage, as well as how they brake, accelerate, and handle corners.
The specific data gathered may vary by insurer, but the information is normally used to generate a driving score that directly influences the cost of a telematics car insurance policy. Additionally, the GPS technology of telematics devices can assist with vehicle recovery in case of theft, evaluate the efficiency of fleet routes, and provide valuable information in the event of an accident.
There are several types of telematics insurance policies available for vehicle fleets, each involving a black box, OBD plug-in device, or smartphone app to collect data during operations. Generally, the device type and data saved will differ depending on the insurer.
Telematics policies base discounts on a fleet’s overall driving score. If a fleet doesn’t consistently maintain a high score, it might not qualify for a discount and could even face higher premiums at renewal for poor or risky driving behaviour.
Some telematics insurance policies require a permanently installed device in each vehicle. While installation may be free, fleet managers could incur charges if the device needs to be removed.
Certain black box policies set a cap on the number of miles covered. Exceeding this limit might void a fleet’s coverage, leaving managers unable to make a claim.
Many telematics policies reward safe driving over time, which can mean staying with the same insurer to fully benefit. Relatedly, driving scores cannot be transferred to another provider, limiting fleet managers’ options.
Telematics insurance incentivises constructive feedback on driving habits across a fleet, helping it improve over time. For instance, if employees frequently take sharp turns, managers can alert them to adjust their driving style.
Fleets with high safety scores may see lower premiums than what standard policies offer. Similarly, low-mileage fleets might save money with a pay-as-you-go plan.
A telematics device can help locate a fleet vehicle and its cargo if it has been stolen, which is particularly important when operating in high-risk areas.
If an incident occurs, data from a telematics device can help determine fault. In turn, speeding up the claims process and providing fleet managers with peace of mind.
Implementing a fleet management solution integrated with telematics enables operators to monitor vehicle data and gain actionable insights. Ultimately, this fundamentally improves your drivers’ behaviour, leading to fleet-wide optimisation in areas like fuel consumption and productivity.
Moreover, sharing this information with your fleet insurance provider can demonstrate a commitment to safety, lessening the financial quotes you receive. If you’re interested in these benefits for your fleet, then be sure to make an enquiry today.
Regularly exceeding speed limits can have a serious effect on a fleet’s overall driving score. In some cases, persistent speeding may even result in the insurer cancelling the policy. While telematics data is not typically shared with the police for prosecution purposes, insurers might still take internal action based on poor driving behaviour.
No, turning off or tampering with a black box is usually a breach of the telematics insurance terms. These devices are meant to remain active at all times, and so disabling them could invalidate the entire policy. This not only removes access to any potential discounts, but it could also make securing future cover more difficult.
Yes, telematics policies generally include a degree of European cover, although the level and duration of this cover can vary between insurers. It’s therefore important to review the policy carefully to ensure a fleet is adequately covered when operating in certain countries.