Zego, the UK’s first InsurTech unicorn, has unveiled plans to change the way drivers think about car insurance by moving away from traditional “black box” models and introducing an app-based telematics system.
For years, telematics insurance, often known as black box cover, has required a device to be fitted into a vehicle to track driving habit, according to FF News. Zego argues that this approach adds unnecessary complexity, from installation costs to a lack of transparency around data use.
Its alternative is a smartphone app that uses in-built sensors to record driving behaviour, including speed, braking, and cornering.
Unlike conventional black box insurance, Zego’s platform provides immediate feedback to users, allowing drivers to see how their habits impact both safety and cost. The company says this shift makes its product not just more convenient, but also more focused on helping drivers build safer habits.
Zego’s app is currently geared toward new drivers, a demographic that often faces some of the steepest premiums in the UK. The system creates a driving profile from every journey, enabling policyholders to demonstrate safe driving patterns rather than being assessed solely on factors such as age or postcode. This data can then be used to calculate fairer renewal prices and provide more tailored cover.
Zego positions its move as part of a broader mission to modernise car insurance. By putting telematics in an app, it aims to make cover easier to access, clearer to understand, and more effective in rewarding responsible driving.
Sten Saar, CEO of Zego, said: “Car insurance in the UK has relied on outdated models for too long, leaving drivers paying more than they should.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.”
