Installing a tiny black box or a monitoring gadget in your car can telematics help reduce your auto insurance cost to a great extent. According to the article by Press Association, the author tested out this technology with a telematics tracker installed in his car for ten days. The results turned out to be excellent, with 99 out of 100. With that record, the auto insurance company could offer a low premium or a discount in return. This technology is very beneficial to provisional, newly-qualified and young drivers, who are in the high risk group; it allows them to justify the insurance costs based on their score.

Although the author has a nearly perfect point, he still questioning what went wrong with the other 1 point. The little box provides advice on improving driving behavior based on the following 12 ‘Events’, which shown that the author had six harsh breaking events, two harsh accelerations events and four speeding events during the testing period.
For the future outlook of this technology, the system is useful in pinpointing any existing bad habits and suggests particular steps to improve your driving behavior. The downsides are privacy issues, night driving restrictions and the low mileage limits. Please let us know about your thoughts on this topic and how successful you think insurance companies will be in the telematics industry.