How much money does a car insurance company make on a policy for a young, male driver? None.
They make their money on such policies by taking their insured drivers’ premiums and investing on the money markets.
But some some young, innovative insurance companies, including Carrot, Ingenie and Coverbox, insure drivers who are willing to drive with a ‘black box’ in their car.
These drivers are more likely to be careful whether there’s a black box in their car or not, and they’re more likely to drive carefully because they’ve got a black box in their car.
The black box enables the insurance company to track the car, how it’s driven, and when.
Crucially, they can find out even more – by communicating with mobile phone masts, for example, to provide the exact time that an accident happened.
The result of this technology is drivers with lower premiums and insurance companies with higher profits.
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