Tracking devices to be installed in all new cars

19 May 2014

All new cars will come fitted with a black box recording device known as telematics from next year, which could push up insurance costs.

Telematic boxes record data such as the amount of journeys made, speed, braking and time of day your vehicle is used, and when linked to car insurance, can be used to offer discounts for those who are found to drive safely.

In recent years black box-style insurance has become more and more popular, especially among young drivers often face hefty insurance premiums.

However, while all new cars will be fitted with the technology – the purpose of which is to aid the emergency services in locating crashed vehicles - it won't be compulsory for drivers to have their car insurance linked to it.

Motorist could face paying more for their car insurance premiums if they don't want telematics insurance, industry experts have said.

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Opt-out situation

Tom Ellis of Gocompare said: "In 10 years' time there will still be customers who prefer not to have a telematics device installed but it will be an opt-out situation, rather than an opt-in.

"There will be reasons for people opting out – perhaps because they are bad drivers, or unhappy with the privacy element, or have an old car. But they will have to accept a higher premium to insure their car."

However, spokesperson with the AA, Ian Crowder, disagreed. He said: "If you do not want the insurance then it is unlikely your premiums will go up – premiums are currently falling, though we don't expect that to continue."

He is a supporter of telematics and the part the technology can play in making the roads safer. He added: "There are far too many deaths and serious injuries on our roads and anything that can cut that has to be a good thing."

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