Yes, this is indeed what telematics does. It monitors everything about how you drive, where you drive and when you drive. If you are a safe careful driver, you are rewarded, if you are not you are penalised. They can cancel your policy if they think you are reckless or if you are caught speeding. If you have an insurance policy cancelled, it can make it difficult to get a policy in the future. I have in-depth knowledge of telematics and provide consultancy to the insurance industry on it. Personally, I would never have it or want it. If you were forced to have it and had no other option (i.e a young driver he has just past their test) then it can only benefit them. I would want a substantial discount (i.e in the hundreds of pounds) to have one in my car, rather than £50. Try using brokers rather than price comparison sites, or contact insurers directly.