On average Telematics insurance us cheaper for those that demonstrate higher driver rating scores. That’s the whole deal: instead of guessing your risk from broad averages (age, postcode, car group, claims history), telematics adds real driving signals like speed patterns, braking, cornering, time of day, and mileage. If those signals show you’re low-risk, the price can drop. If they don’t, it can stay the same or go up at renewal.
A more honest way to frame it is:
Telematics insurance isn’t automatically cheaper, it's more likely to be cheaper for drivers who consistently drive like they want it to be cheaper.
What affects the cost of telematics insurance?
Your price is usually based on your “standard” insurance risk factors, plus what your driving data shows over time. The following things can effect the cost:
- Claims history & driving record (points/convictions)
- Telematics driving score (overall behaviour)
- Speeding patterns
- Harsh braking / sharp acceleration
- Cornering behaviour
- Time of day you drive (e.g., night driving frequency)
- Phone distraction signals (mainly app-based policies)
Telematics insurance pricing is usually a blend of “traditional” insurance factors and what your driving data shows. The traditional factors set your baseline risk: insurers look at how likely you are to claim (and how expensive that claim might be) based on your experience, location, car, usage, mileage, and history. Telematics then adjusts that baseline using behaviour signals not just one journey, but patterns over time. If the data suggests you drive smoothly, stay within limits, and avoid higher-risk driving times, you’re more likely to benefit. If it shows frequent speeding, lots of harsh events, regular night driving, or distraction, it can reduce or remove the savings, especially at renewal. Finally, the “real cost” also depends on the product terms: a lower premium can be offset by a higher excess, extra fees, or stricter rules, so the cheapest quote isn’t always the cheapest policy overall.
When telematics might be more expensive
Telematics can fail to save money (or cost more later) when the data consistently signals higher risk. Common situations include:
- Frequent late-night driving (even if you drive well, time-of-day can be a risk marker)
- Heavy stop-start commuting where harsh braking/acceleration is common
- Higher mileage lifestyles (more exposure usually means higher risk)
- Naturally sharp driving style (fast pull-aways, strong braking, tight cornering)
Also, sometimes the first-year quote looks good, but the real telematics impact shows up at renewal which is why it’s best treated as a long game, not a guaranteed discount.
Telematics vs black box: what’s the main difference?
The main difference between telematics and a black box is that telematics is the method (using driving data to help measure risk and influence pricing), while a black box is one specific device that can be installed in a car to collect that data.
In practice, “telematics insurance” can mean data is collected through a black box, a plug-in device, or an app-based setup. So if a policy is telematics-based, it might involve a black box but it doesn’t have to.
What driving data is tracked?
Different insurers track slightly different signals, but most telematics scoring uses a mix of:
- Speed (including how often you exceed limits)
- Acceleration (rapid speed-ups can be a risk marker)
- Braking (harsh braking can suggest aggressive driving or close following)
- Cornering (sharp turns at speed can indicate higher risk)
- Time of day (night driving can be treated as higher risk)
- Mileage and trip frequency (exposure to risk)
- Phone distraction (more common in app-based setups)
Who is telematics insurance for?
Telematics insurance is generally best suited to people who believe they’re safer-than-average drivers and are happy to prove it with data. That includes:
- Young drivers (17–24) and newly qualified drivers who get hit with high premiums because their risk group claims more on average. Telematics can give careful new drivers a route to fairer pricing.
- Drivers with low annual mileage, because lower mileage often means lower exposure to accidents, and telematics can help validate that pattern.
- Careful, consistent drivers who don’t speed much, avoid harsh braking, and drive predictably.
- Drivers who want feedback on how they drive (some people genuinely like the scoring and coaching element).
It may be less suitable if you do a lot of late-night driving, drive in heavy stop-start traffic all the time (which can trigger harsh braking/acceleration events), or if you simply hate the idea of being tracked.
Zego Sense (Zego’s telematics insurance)
Sense is Zego’s telematics-based car insurance that uses driving data captured through the Zego Sense app to build a picture of how you drive over time. The point isn’t to price you purely on broad averages (like age or postcode) forever — it’s to add real driving behaviour into the mix.
If you drive consistently well, Sense is designed to reward that with a personalised renewal quote based on your driving data. Practically, that means your day-to-day habits (smooth driving, sensible speed, safer driving times, and consistent patterns) can help you demonstrate you’re lower risk, which can support a better price at renewal compared with a policy that never “learns” how you drive.
