New RAC Based Black Box Deal to Reduce Insurance Prices

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.

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