Telematics: the benefits of in-vehicle black boxes

1. What is a telematics device or event?

A telematics device is a car black box. The first models were in fact small black boxes which were fitted under the car seat. The current models are smaller. They can easily be plugged in into the car's dashboard or 12-volt power outlet.

Once installed, the device continuously records data for accident reconstruction purposes. This includes acceleration, date and time. In the event of a claim, the insurance company analyses the data records and reconstructs the accident to make it easier to establish liability. Such black boxes are also referred to as Event Data Recorders (EDR). 

The latest versions also have numerous other functions. They double as digital speedometers, as it were. For example, they collect data on the location of the car, the policyholder's driving behaviour or the type of road used (motorway or urban roads).

2. Which insurance companies offer telematics devices?

Nowadays, insurance companies rarely offer actual black box models. However, several providers offer premium discounts in exchange for being able to collect and process car data.

Mobiliar's Clever Drive

Mobiliar's Clever Drive for drivers up to the age of 30 falls under this category, utilising an EDR that continuously collects data on your driving behaviour – such as mileage or speed – and sending it to the insurance company for analysis. In this instance, the device is not used as an aid to accident reconstruction, but as a comprehensive data recorder.

Mobiliar uses Clever Drive for its pay-how-you-drive insurance model. This allows the insurance company to calculate the policyholder's premium based on their driving habits. Good driving behaviour can earn you a premium discount of up to 25%. 

Drive Coach by Smile

Smile does not offer policyholders a telematics device strictly speaking, but a Drive Coach app. It analyses the user's driving behaviour and calculates a drive score. Smile rewards a good drive score with points that policyholders can exchange for cash via the app.  

Safe Driver Bonus by AXA Winterthur

Safe Driver is the successor software to Drive Partner. Unlike its predecessor, Safe Driver does not include any installation units for the car. The programme uses the data recorded by the vehicle itself for accident reconstruction. There is also a prevention programme in the form of interactive content – and a 15% premium discount for young drivers between the ages of 18 and 25. 

3. Telematics devices are compulsory in new car models since July 2022

The question about whether or not to install a telematics device is now moot. Since July 2022, the use of such devices in new car models is no longer optional. From 2024 onwards, a black box recorder will be compulsory for all newly produced cars. 

The rule is part of the EU's efforts to reduce road fatalities. Switzerland is adopting the relevant EU regulations.

With or without a telematics device – car insurance premiums can vary greatly depending on the insurer. That's why it's worth requesting multiple quotes and comparing premiums.