Mature woman fastening a seat belt on inside her car

Telematics car insurance

Published - 19 Nov 2024 | Updated - 30 Sep 2025

There are many types of car insurance on the market, and one of those is telematics car insurance. Also known as black box insurance, this type of car insurance monitors your driving habits and rewards safe drivers with potential discounts and benefits.

Discover everything you need to know about telematics car insurance and how it can make your insurance more affordable and tailored to your driving style.

What is telematics car insurance?

Telematics car insurance involves installing a small device in your car. This device tracks how you drive, like your speed. Insurers then use this information to give you a personalised insurance quote.

How does a black box work?

The black box uses GPS to monitor your driving. It records:

Mileage: How often and how far you drive.
Speed: How fast you go and if you follow speed limits.
Time: When in the day you usually drive.

It also tracks how you handle the car, like how hard you brake, how sharply you turn and how quickly you accelerate.

All this data is turned into a score that insurers use to see how safe or risky you are as a driver. This helps them set a personalised insurance premium for you, with potential rewards and discounts for safe driving.

How much is telematics car insurance?

The cost of telematics car insurance depends a lot on how you drive. The black box in your car monitors your driving habits. If you drive safely, your insurance company will notice. Initially, the price might be similar to regular car insurance. But if you continue to drive carefully, your insurance premium could go down.

Other factors can influence the cost of your telematics car insurance. These include building up your no-claims discount, driving fewer miles, choosing a car with a lower insurance group rating, and parking in a safe place overnight.

How to install a telematics system

There are two ways to install your black box: you can do it yourself or have a professional do it. This depends on what your insurance provider offers.

If you install it yourself, plug the device into the diagnostic port (OBD port) or the cigarette lighter. Some devices come with a smartphone app, so you’ll need to pair it with your phone once it’s plugged in.

If a professional needs to install it, your insurer will send an engineer to do it. They usually place the black box behind the dashboard.

What are the advantages of having a black box?

Black box insurance has several benefits:

Promotes safe driving: You can get discounts for driving safely, which encourages you to be more careful and improve your driving skills.
Helps with false claims: If someone makes a false claim against you, the black box data can show you weren’t speeding or at fault.
Tracks your car: The black box has GPS, so you can find your car if it’s stolen.

What are the disadvantages of having a black box?

There are also some downsides to telematics car insurance, such as:

Curfews: Some insurers set time limits on when you can drive, often to avoid late-night driving when accidents are more common.
Higher costs for bad driving: If you have poor driving habits, the black box will report this to your insurer, which could increase your premiums.
Journey limits: The black box might restrict how many trips you can take each day, as more trips can mean a higher risk of accidents.

Saga doesn't offer telematics car insurance, but our policies are packed with features designed for experienced drivers who want dependable protection on the road.

With a Saga Plus or Saga Select policy, your No Claim Discount (NCD) will be protected against two fault claims in a three-year period, as long as you have four or more years’ NCD to start with. Protected No Claim Discount (PNCD) can be added to Saga Standard cover too. You won’t lose your NCD or your excess if you’re hit by an uninsured driver either, as long as you weren’t at fault and you provide us with their registration number.

Can I put my black box in another car?

If you have a self-installed black box, you can move it to another car by plugging it into the OBD port or cigarette lighter. Just remember to inform your insurance company about the car change.

Can I drive before my black box arrives?

You can drive your car before the black box is installed as long as your black box insurance is active. But you must get the black box fitted within a set time. If you don’t, your insurance company will cancel your policy.

Can a black box drain your car battery?

A black box uses very little power, like a car radio, so it won’t drain your car battery. Just drive your car regularly and avoid leaving it unused for weeks, and you’ll be fine.

Can you turn off telematics?

You must keep your black box on throughout your telematics insurance policy. If you turn it off, your policy could be cancelled, so you won’t be covered if you have an accident. You’d also miss out on any discounts for good driving and might face higher premiums when you look for new insurance.

What happens if I go over my miles on a black box?

If you find yourself driving more miles than you estimated, let your insurer know and update your annual mileage. You give an estimate when you start your black box insurance policy, but things can change, like getting a new job with a longer commute.

When you update your estimated mileage with your insurer, they might charge you an additional fee to cover the extra distance. But if you fail to update them and drive a lot more than agreed, they could cancel your policy and deny any claims.

Do you get fined if you speed with a black box?

You won’t get a speeding fine from your black box unless the police or a speed camera catches you.

However, the black box records your speed. If you often go over the speed limit, you might miss out on discounts and bonuses from your insurer for safe driving. It could also make your insurance more expensive in the future, as insurers can see your history of reckless driving.

Who are Saga's car insurance policies underwritten by?

Saga’s car insurance policies, exclusively for people over 50, are unique products designed by us specifically for our customers. They are underwritten by a number of carefully selected insurers that provide high standards of quality and service.