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What are telematics in a car?

Telematics technology uses information from a vehicle’s on-board computer along with GPS data to record how and where a car is being driven – for example, how fast it is going, how harshly the accelerator or brakes are applied, etc. This information can then be sent, using a mobile phone signal, to a central hub, where it can be collected and analysed.

Telematics is now widely used by insurance companies to assess how its customers behave behind the wheel, offering discounts to those who drive slower, safer and more smoothly.

Related Jargon

What does a black box do in a car?

A black box is a small GPS unit in a car that sends information to your insurance company, so that you can potentially pay lower premiums. 

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