When the ruling was finally approved by the European Court of Justice to ban using gender as a car insurance quote factor, car insurance companies have been searching for a solution to keep motorists on the road. This is in spite of the fact that 98% of all driving convictions have been committed by male drivers.
Young male drivers are the motorists who receive the most expensive car insurance premiums on the market. Yet, coming this December 2012, female motorists will be soon joining the club. As stated by the UK Treasury, the status quo between male and female drivers will soon be nonexistent. This is because of the estimated £ 920 million a year amount that will be brought forward by women drivers under the age of 45. Male driver, on the other hand, will be expected to pay £ 620 million less than their overall total last year.
One of the possible factors that car insurance companies have seen to be a solution to this ever-growing problem is the use of the ‘black box’ or telematics technology.
A black box is a recent technological advancement with the capability of gathering all telematic data and keeping it in its database. This is because of the fact that a black box includes GPS and mobile communications technology which will be connected to a port in your car so that all of the data will be then sent to your insurer. And since the black box has the capacity to tell where you were a minute ago and one minute after, it can gage how fast you were driving and if you were going above the allotted speed limit in the area. Apart from this, braking, accelerating and sudden swerves will also be closely monitored and sent to your car insurance providers. So, if you get an adrenaline rush or a certain thrill whilst driving at 100mph, that little black box installed into your car will be telling your insurer just how careful you were driving your car.
The black box is being marketed towards young driver’s market significantly and heavily because they are the drivers who are being affected by these expensive car insurance premiums. If young drivers will drive on their best behavior and retain safety whilst driving, it is possible for both male and female young drivers to retain cheaper car insurance premiums.
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