The RAC and the technology group Quindell are working together to market and install black boxes in people’s cars, tracking their driving and building up a profile which can then be used when negotiating insurance quotes, potentially getting customers much cheaper insurance policies.
The joint venture is centred on the creation of a new company, Connected Car Solutions (CCS), which will initially target the RAC’s current 2.1 million customer base with the installation-free black box.
Of course, the idea of black boxes is not new, and is often associated with younger drivers. However, Quindell and the RAC are expecting a strong revenue stream from the black box subscriptions, which will reportedly be between £3 and £9 per month.
This will be the world’s largest insurance/telemetric contract to have been signed, with £30m already having been invested into it.
This has definitely raised interest as the analysts of Cenkos, a corporate finance advice firm, expect CCS to be worth £15bn in the long term.
Growth is expected, and assuming key milestones are met, a further £70m could be invested.
The service is planned to begin rolling out in July.