UK insurtech Zego outlined its strategy to reshape the car insurance market by shifting from traditional black box telematics to a smartphone app-based system. The company’s approach is designed to offer drivers more control, transparency and support in becoming safer on the road.
Telematics insurance, commonly known in the UK as black box insurance, has traditionally relied on physical devices installed in vehicles to monitor driving behaviour. Zego’s app-based system removes the need for such hardware.
An app-based alternative to black box insurance
According to the company, while black box insurance has helped many drivers access fairer cover, the model often involves extra steps such as device installation and offers limited visibility into how data is used. Zego’s system uses smartphone sensors to track key driving metrics, including speed, braking, and cornering, in real time.
This data provides drivers with clear feedback and helps build a profile that reflects their actual driving habits. The company stated that this makes its telematics product more accessible and transparent than traditional black box insurance, as it gives drivers insights that encourage safer habits.
A focus on new drivers
Zego’s current focus for this technology is on new driver insurance, a demographic that has historically faced some of the highest premiums in the UK. The company’s app-based telematics is intended to give new drivers the opportunity to prove their safe driving habits, rather than being assessed solely on factors like age, postcode, or lack of experience.
Each journey contributes to a driver’s profile, which can then be used to build a fairer renewal price. For new drivers, this provides a way to demonstrate careful driving and access more transparent cover than is typically available through traditional insurance models.
Sten Saar, CEO of Zego, commented: “Car insurance in the UK has relied on outdated models for too long, leaving drivers paying more than they should. Zego is redefining the market with telematics insurance that is app-based, simple, and safety-focused, giving people cover that reflects how they really drive. For new drivers in particular, it’s about proving yourself on the road and being recognised for it. That’s what sets Zego apart.”
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