Insurer introduces Australia's first in-car black boxes

Insurer introduces Australia's first in-car black boxes | Insurance Business

Insurer introduces  Australia

QBE has introduced Australia's first insurance product to use in-car telematics technology.

Insurance Box uses a small plug-in car device uses sensors to measure driving habits and uses this information to calculate a 'driver safety score' (DriveScore) This is then used to influence the insurance premium, with safer drivers paying lower premiums - regathering than being determined on age, sex and postcode.

“Insurance Box focuses on how you drive. If you’re a good driver, whether you’re 18 or 80, you should be rewarded for that. Why should you subsidise those who aren’t?” said Frank Peppard, founder of Insurance Box.

“We expect young drivers and their parents will be particularly interested in Insurance Box. These drivers stand to save significant dollars through this new ‘skills-tested’ approach to car insurance,” he added.

Data collected by Insurance Box can assist with a claim by providing an accurate account of what happened in a collision and the GPS functionality in the Insurance Box device can help to locate a stolen vehicle.

In addition, drivers receive insights and advice through an online portal and SMS to improve their driving habits and potentially save even more money.

Tim Plant, General Executive Manager of QBE Australia, said as an insurer, the more data QBE can obtain, the more accurate it can be in assessing risks.

“Through Insurance Box we not only have the ability to encourage our customers to become safer drivers, but to reward safe driving behaviour through lower premiums,” said Plant.

"We are excited to be playing a leading role in bringing this Australian-first capability to the market and offering our customers a product that delivers both potential cost and safety benefits and also encourages safer driving practices, which benefit all on the road," he said.

Telematics devices have become increasingly popular in the UK, where the severity and frequency of claims has fallen by 30%. It has also helped recovered up to 95% of stolen vehicles fitted with the devices.