A telematics policy prices your premiums depending on how you drive. A device – known as a 'black box' – is installed in your car to monitor your actions behind the wheel – so the better your driving, the less you pay for cover. Telematics insurance can be one way to help bring down the insurance costs for younger drivers.
If you are confident that you can drive well you can earn £100s back on your cover via a telematics policy. But be warned: driving badly could also see your premiums increase.