Black box car insurance is the type of insurance policy that allows you to pay as you drive. Black box insurance is also known as telematics and it works when your car insurer installs a GPS device in your vehicle to monitor your behavior behind the wheel. The telematics provider will use the data collected by the vehicle over time to potentially cut down your premium cost if you are exhibiting safe drive behavior. But for some, telematics insured vehicles are big brothers that not only monitor them but also reports the violence such as exceeding speed limits or not buckling up the seat belt. To read more about this, click here.
Recently a newspaper in the U.K reported an incident in which a telematics provider received a claims report request from one of their insurer partners. According to the report the driver claimed £55,000 in a roadside incident and moreover to validate the incident he claimed to receive nine personal injuries in this incident. However, upon reviewing the driving data, no such crash incident was detected.
When the investigation was broadened, the policyholder’s movement was found to be suspicious. The telematics data of the policyholder revealed that he was driving up and down a country over and over again, reversing around corners and spending a lot of time stationary with the ignition still switched on. The policyholder’s entire driving data was further looked in to see whether they had ever visited or even driven past the reported incident location – which they had not.
This is the perfect example of telematics working at its best. Without the installation of the black box, it would have been very difficult to dispute this claim or prove that it was fraudulent. More importantly without the black box on board, this policyholder could have easily got away with it but in the longer run, these successful fraudulent claims will ultimately cost other policyholders.