More and more drivers do — but it means signing away your privacy

it is sorely tempting to put my foot down and break the 30mph speed limit while driving to my friend’s engagement party.

Not only am i running late, a car is following me so closely the driver may as well be sitting on my bumper. But i will not budge above 29mph — because a computer is monitoring my every move.

For the past few days, i’ve been using a new type of technology, telematics, to record my driving habits — my speed, how suddenly i brake, even where i go and when. if i can prove to this little computer that i am a safe driver, i’ll save money on my car insurance.

But so far it’s not looking too good. Apparently i’m a tad on the speedy side, and now i’m frantically trying to improve my score.

telematics insurance, or little black box insurance as it’s also known, has been around in the UK since 2008, but has soared in popularity in recent years.

today, there are more than a dozen insurers offering this type of cover. some are household names, such as the AA and tesco Bank, while others are smaller firms specialising in this technology.

the boom is largely down to younger drivers who have realised they can save hundreds of pounds with a telematics deal.

in the past year, the average car insurance premium for a new driver aged 18 has risen by 17pc to an eyewatering £2,000.

But if they are willing to opt for a telematics deal, many insurers will give them a significant discount.

For example, on comparison site Gocompare the cheapest traditional car insurance policy listed for a 17-year-old motorist from London driving a 2011, 1.2L Renault Clio costs £2,487 with Churchill. if they sign up for little black box insurance, it’s £1,881 with Hastings Direct smartMiles — a £606 saving.

this is because insurers know that someone willing to have their driving monitored is more likely to be a safe driver. And if not, they can hike your premium at the end of the year.

A spokesman for Direct Line DrivePlus says: ‘telematics is generally chosen by those keen to be rewarded for safe driving through lower premiums. the safest drivers avoid harsh braking or acceleration and drive at a safe speed.’

in the past year, the number of young drivers choosing telematics over traditional car insurance has jumped 13pc, says comparison site Moneysupermarket. Older drivers are also turning to these policies to combat soaring premiums.

But telematics isn’t for everyone. in order to make savings you may have to make serious sacrifices — not least with your privacy.

HOW THEY TRACK YOUR MOVEMENTS

tELEMAtiCs policies differ from insurer to insurer. But all involve having a small device fitted to your car that monitors your driving.

i’ve been trialling two pieces of kit — one with insure the Box and another with smart Driver Club.

With insure the Box, an engineer has to visit my home to glue a small black box, about the size of a smartphone, to the battery of my car.

With smart Driver Club the device, which looks like a phone charger, plugs into a small port, the on-board diagnostic (OBD), that connects to your car’s computer. this is usually found in the footwell.

Normally this would be posted to you, but because my car is, according to the firm, ‘a little tricky’ an engineer has come out to do it for me.

Once fitted, each journey is recorded: my speed, how tightly i take corners, any sudden stops, the time of day i drive, what roads i use and how far i travel.

All this data is then fed back to the insurer, who can use it set the price of my premium in the future.

BIG BROTHER IS ALWAYS WATCHING

YOU can also see the information being collected. With insure the Box you have access to an online account with all your data, updated monthly. Drivers are also sent tips