The use of telematics in insurance describes the integration of wireless communications, vehicle monitoring systems and location-based devices that can be used to capture data on driving habits. Insurers can use this information to price insurance policies based on real information, rather than assumptions they make about drivers based on information given in the quote process. This type of insurance is often better known as Pay As You Go and according to Tiger.co.uk, a popular motor insurance comparison site; it is growing rapidly in popularity. 2010 saw an average increase of almost 40%* in the cost of car insurance in the UK, which has led to an emergence of more pay as you go providers as motorists seek to find cheap carcheap car insurance. This type of insurance most naturally appeals to the groups most affected by the hike in premiums; younger drivers who have little previous driving history to bring down their premiums and the over 50s who generally drive less in terms of mileage. A spokesperson from Tiger.co.uk commented; “We introduced our first telematics partner, Coverbox in March last year, and our second telematics partner, insurethebox, came on board in October. Since that time, almost 10%** of our purchasing shoppers have opted for a pay as you go policy, and the number of people choosing these policies has increased month on month.” Interestingly, it looks to us like these purchasers are coming from a wide range of age groups, suggesting that this type of insurance offers a good deal not only to younger and older drivers, but to a broad range of drivers. Tiger.co.uk is one of the few comparison sites to offer motor quotes from two telematics providers and we plan to feature more partners offering this type of insurance in the very near future. Insurance packages differ by provider, but are largely based upon the distance travelled and, in some cases, the time spent driving, the time of day and the quality of the driving. If you use a comparison site to research and obtain insurance quotes you can explore and compare the policy information in detail to make sure you find the right policy to suit your individual needs. Telematics boxes are about the size of a mobile phone and are usually fitted under the dashboard out of view. This technology offers benefits beyond just helping drivers to save money on their car insurance as it can also be used to provide important information in the event of an accident that can support claims and disputes. In the future it could also be used to automatically call the emergency services to the scene of an accident. * AA British Insurance Premium Index 2010 **Tiger.co.uk sales data 2010/11 About Tiger.co.uk: Tiger.co.uk is a trading name of Call Connection Ltd. http://www.tiger.co.uk is a UK based, independent price comparison site, offering insurance quotes from over 130 motor insurance brands. Call Connection Ltd is authorised and regulated by the Financial Services Authority (number 308374). Address: Saxon House Cromwell Square Ipswich Suffolk 01473 542479