Insurers are planning to introduce Black Box technology that could mean drivers will be paying higher premiums for driving in rain snow and hail as insurers will stop providing discounts for them.

Adverse weather conditions such as Snow, Rain and hail during a journey could lead to motorists paying higher car insurance premiums utilising a new black box technology, according to a front runner in the telematics industry.

Black box to trace driving in adverse driving conditions

Black box to trace driving in adverse driving conditions

One of the biggest in car Telematics companies in the world -Octo Telematics – has recently announced a new partnership with a weather forecasting company that will see live journey weather conditions being introduced as part of insurance driver analysis for insurance premium calculations.

The Octo U app released by Octo Telematics now has access to data from The Weather Company (an American version of the UK Met Office) to create a “score” using an algorithm that assesses driving conditions during a motorists journey.

The “weather score” will be calculated alongside driving habits such as driving speed, braking and acceleration that will provide drivers score based on their risk profile. Weather conditions such as Ice, rain, hail and snow would all be seen as additional risks because historically drivers have more chance of having an accident in such adverse weather conditions.

Unlike other risk factors such as driving convictions / endorsements, like DR10, IN10, TT99, driving in bad weather conditions won’t make insurers hike premiums, the lowest scoring motorists just won’t have the discounts applied calculated by the black box. If rates are higher because of driving convictions, motorists will be better looking for a convicted driver car insurance policy from a specialist insurer that provides insurance for convicted driver insurance.

The app from Octo Telematics links up to a range of insurers who offer quotes for profiles calculated by the app – the highest scoring motorists can receive discounts of up to 30 per cent.

Insurers that currently offer black boxes such as AXA, Direct Line and Admiral offer lower premiums for good drivers. It has found to benefit drivers up to the age of 25 the most as they face higher premiums for being young drivers. Overall use of usage based insurance is projected to be used by 36% of insurance companies by 2020.