New research provides evidence that telematics insurance is now cheaper than standard cover - at least for youngsters.
MoneySuperMarket.com looked at the difference in price between 12.2 million car insurance quotes, concluding that drivers between 17-19 could save an average £438 on the annual cost of their insurance by switching to a telematics policy.
Much like a car tracking system, this sees their vehicle fitted with a black box that can monitor mileage, costs and behaviour such as acceleration and braking patterns - with all of this information available for review online.
Yourmoney.com says black box insurance makes the driver aware of their driving habits and allows them to make adjustments in order to bring down the cost of their insurance.
This is similar to the way in which tracking systems save money in fleet management. The device's real-time reports allow the businesses to track their drivers' behaviour and bring down expenditure, only in this instance it's to fuel that money is being saved on, not insurance.
Kevin Pratt from MoneySuperMarket said the news that telematics is now becoming mainstream means it could play a huge part in the future of motoring.
He told thisismoney.com: "The financial benefits of using telematics are obvious for drivers who are considered a higher insurance risk: installing a black box device in your car can save around £212 on the price of a policy compared to standard car insurance."