QBE has enhanced its car insurance telematics product with the development of a smartphone app.

Insurance Box, launched in October last year, uses a plug-in box under the dashboard to record how well a vehicle is driven and adjust premium costs accordingly.

Now consumers can download the new app to record their driving score, instead of using the box.

QBE Head of Customer Experience Frank Peppard told insuranceNEWS.com.au both methods offer the same basic features, but there are some differences.

“If your car is likely to be stolen then the box is better, because that stays in the car while the phone stays with you. But the app can tell whether the driver is texting and braking at the same time. Over a period of time you could detect that behaviour and offer guidance.

“Overseas, both options tend to be offered.”

Mr Peppard says take-up of telematics is in line with expectations given its recent launch and the fact advertising has not yet started.

“Lots of insurers are offering this overseas but we are the first in Australia. This new technology is pretty sophisticated and pretty early. It takes a while for people to understand the benefits.”

As well as rewarding driver behaviour, telematics can also save insurers money by verifying information such as where a vehicle is kept and how often it is used, Mr Peppard says.

The technology can also force honesty in claims, cutting the need for costly investigations.

“We can tell when an accident occurred because there will be huge braking and the car stopping in the middle of the road. We can also tell what speed the customer was driving at the time.”

Current customers who have proven their good driving will be offered the app first, before it is made available to new customers later this year.