Crispin Moger, CEO at Marmalade, a leading provider of cars and insurance for young drivers, reveals the truth about this increasingly popular bit of kit.

Telematics or black box technology is becoming well-known as a way to save money on insurance for drivers aged between 17 and 24, but why it is cheaper and how does it work? And why does it have to restrict your freedom?

Let’s start by busting a few myths. Not all telematics insurance policies have curfews. We believe that driving gives you freedom, which is important and we’re not about to take that away. There are rumours that black box technology lets insurance companies spy on you. For the record we don’t want, or have the time, to monitor your every move and as long as you’re driving safely you will never hear from us.

So what are the benefits? Telematics insurance can save you hundreds of pounds – premiums can be half the price of a non-telematics policy. It can also protect you: on a national basis 1 in 5 young drivers has an accident within the first six months of passing their driving test. For Marmalade’s customers with telematics this can fall to 1 in 20.

So how does telematics insurance work?

• A black box is fitted under your dashboard. The black box records journeys focusing on the ABCs of driving:

o   Accelerating

o   Braking

o   Cornering; plus

o   Average speed

• Each journey will be scored red, amber or green based on your driving in relation to these four behaviours
• As soon as the ignition is switched off, you can log on to a secure customer portal to view your journey and see how you’ve driven.
• If a journey is scored red, often a member of the insurer’s customer services team will contact you within 24 hours to discuss the issues, what caused the red journey and how to avoid them again.

Telematics deals with the two big problems facing young drivers, safety and cost. On average, Marmalade’s customers save 44% on the cost of their first year insurance when they renew, with some drivers saving up to 70%.

Another benefit of telematics is that, if your car is ever stolen, you will be able to log into the system and find it. Some customers even log in to remember where they’ve parked!

Crispin is a passionate CEO, having cut his teeth in the motor and insurance some 20 years ago.

An honours graduate in History and Member of Parliamentary Advisory Council for Transport Safety. Crispin is a self-confessed petrol-head and adrenaline-junkie, enjoying travelling and skiing and he’s a trained LTA Tennis coach. A real music-lover, Crispin also owns an extensive collection of guitars.

Founded in 2006, Marmalade provides a range of products that specifically meet the needs of young people – and their parents – today. These include:Learner Insurance, New Driver Insurance, Cars for young drivers and Student Driver Insurance.  www.wearemarmalade.co.uk