How telematics uses AI to analyse your driving score — and whether it actually saves UK drivers money.
Affiliate disclosure: Some links in this guide earn us commission. This does not affect our editorial content. Read our editorial policy.
Black box insurance — also called telematics insurance — monitors how you actually drive and uses that data to set your premium, rather than relying solely on statistical proxies like age, postcode and occupation. For careful drivers who are statistically categorised as high risk, it can produce significantly cheaper premiums.
A telematics device — either a physical unit installed in your car, a plug-in OBD device, or increasingly a smartphone app — records how you drive. Factors measured typically include: speed relative to posted limits, acceleration and braking smoothness, cornering behaviour, time of day, and total mileage.
Modern telematics products use AI to analyse this data continuously and calculate a driving score. That score determines how much you pay — through a monthly adjusted premium, an annual renewal discount, or both.
Black box insurance produces the most significant savings for young drivers. The average UK premium for under-25s exceeds £2,000 per year. Telematics allows careful young drivers to demonstrate their behaviour directly, bypassing the statistical penalty that age-based pricing imposes. Drivers who score consistently well report reductions of 20–40% within six months.
The majority of new telematics products are now app-based rather than device-based. The insurer’s app uses your smartphone’s GPS and accelerometer to measure driving — no installation required, and you take the device when you change vehicles.
If you are under 25 or a new driver and you drive carefully, yes — it is almost always worth comparing telematics options alongside standard policies. For experienced drivers with long no-claims histories, standard comparison sites typically offer better value.
Affiliate links — Solid Insure AI earns commission if you purchase.