Coverbox is to be supplied with around 15,000 of Quartix's latest tracking devices. These will be used by its policyholders as s part of its pay-as-you-drive service – a service that offers refunds if the system detects their mileage is less than anticipated or their driving is limited to off-peak periods when fewer accidents happen.

At present, the service is aimed at consumers but Quartix believes that telematics-based insurance will increasingly be takne up by fleets in the future.

Andy Walters, Quartix managing director, said: 'Fleet managers are already using telematics systems to modify driver behaviour to reduce health and safety risks and fuel costs, and it's a relatively small development to share that information with insurers and to reduce premiums.'

Quartix is supplying Coverbox with its new TCSV9 system, which incorporates a comprehensive range of features in a unit only slightly larger than a matchbox and weighing under 80g. The features include GPS tracking; a crash-detection "black box" to alert the insurance company or fleet owner of an accident – plus detailed storage of vehicle movements prior to a crash; and  a tri-axis accelerometer to monitor acceleration, braking and cornering.

Speeding is monitored against a road speed limit database for the UK. Data can be used to assess a driver's accident risk level through his driving behaviour.