Wednesday, 11 January 2012

Why black box insurance is not spying

With the emergence of telematics car insurance (more commonly known as black box insurance) many young and learner drivers have welcomed iKube's product with open arms as they see it as a means to help keep the cost of their car insurance relatively low.

However, in recent years some criticism has been aimed at the use of telematics to help control the cost of car insurance for young drivers. So - what is the main criticism?

Well it's quite simple really - many of the harshest critics believe that the black box unit that's installed in the policy holder's car is being used to spy on them and could be abused as a result.

This is a severe misconception of black box insurance - more importantly this is a misconception of iKube and what we're about.

So how does iKube use the data that's recorded by the telematics device?

iKube simply uses the device to analyse the time of day the car is being driven. For instance, iKube's young driver and learner driver insurance scheme is based on the policy holder agreeing not to drive between 11pm - 5am as this is statistically the most dangerous time of day to drive.

It's also used to analyse other aspects such as speed, types of roads and braking patterns. However, iKube uses this information to determine what the young driver's policy premium will be at renewal. iKube's sole interest is keeping young and learner drivers safe on the road in an attempt to reduce the prices they pay for car insurance - Simple.