Pros and Cons of Automotive Telematics for Students

When a young individual passes their driving test, there will be times where they would want to go for a fun drive. Now, this usually includes spirited driving through areas like Gohtong Jaya and Ulu Yam and Karak Highway. This is all fun and games but as a parent, this could be very stressful seeing their loved ones driving recklessly. However, there is a solution to stop most of the worries. The use of automotive telematics or "Black Boxes" could potentially lower the risks of accidents and anything else that comes along with it. However, not everything is perfect. As such, below is a list of pros and cons of using automotive telematics for students.

5 Pros of Automotive Telematics to Student

Monetary savings

With young drivers facing steep insurance premiums, fitting a black box to the car could be the most pragmatic way to drive down those annual bills - that can be as much as RM2,500 per year in insurance premium alone.

Tracking to prevent thefts

The GPS tracking system provides a way to find a vehicle if lost or stolen which, may very much often happen to new or young drivers. On top of that, the tracking system also supports to track down the location in case of any possible accidents that may occur.

Automatic Collision Notification

The embedded and protected modem tracks the speed of vehicle with the speed of another vehicle. It notifies to the driver in case of expected collision. Telematics is also called the Black Box due to the secured automatic collision notification modem, which keeps the recordings safe and protected even after a severe accident.

Evidence

In case of an accident, police investigations or insurance claim can be made easier with the use of black boxes as the onboard cameras will record the events closely.

Driving ethics leads to safer driving

Having the technology installed ensures that drivers, especially new student drivers to watch their speed and monitor their driving habits more closely. It’s the closest thing to having an ADI in the car at all times.

3 Cons of Automotive Telematics to Student

Curfews

Some policies or insurers have restrictions on vehicle use – strict curfews in place for, say, driving at night, such as between 11PM and 5AM or during rush hour and breaking said curfew could see you fined depending on the insurer.

Privacy

Having your every movement tracked, logged and reviewed has some obvious privacy implications.

Can be pricy

With 'fines' for bad driving, long journeys or breaking curfews you may find telematics car insurance actually more expensive than alternatives. If you’re not going to monitor your driving properly, you won’t reap any benefits; in fact, it could harm your bottom line.

All in all, whether or not you can get a good car insurance deal with telematics or black box companies really depends on your driving habits. If you do few miles, and mostly in the day outside of rush hour then you can make big savings. However, long trips and journeys during high-risk times (such as late evening or in rush hour) may see premiums higher than a standard insurer. Make sure to check for any fees or installation and removal before you sign up, as these may wipe out any discount you are getting.