We hear a lot about black box recorders in aeroplanes, but we will also be hearing a lot more in the near future about these mysterious devices for our cars.

Insurance companies are always looking at ways to reduce the number of claims and payouts they have to deal with. One way to do this is use black box recorders, or telematics to give it the correct name.

Just as with an aeroplane's black box recorder, the ones fitted to cars are able to measure distance, time and location. This means they can also record speed, though insurers say this would only be taken into account in the event of a collision and drivers breaking the speed limit in normal driving would not be reported to the police.

However, by recording speed, time and location, black boxes can be used to assess the risk factor of a driver. This has been used to encourage young drivers to be more careful, particularly as they are the group most likely to be involved in a serious or fatal collision.

Using the hidden and tamper-proof black box to make sure young drivers are not on the road between certain times, usually from late at night till early in the morning, allows the insurer to offer a lower premium. Young drivers are three times more likely to be involved in a serious or fatal collision or make an insurance claim as a result of such an incident.

The black box can also measure the driver's style, showing if the driver is heavy on the throttle and brakes or smooth and progressive. The smoother the driver, the more likely they are to enjoy a lower insurance premium. In many cases, the more careful driver can save up to a third on their insurance cost, as well as being less likely to be involved in a collision.

While some drivers object to their driving being monitored, it's expected that a quarter of all cars on the UK's roads will be fitted with a black box by 2020. It's already a common practice among company car and van fleets because it lets the fleet manager assess the safety and eco driving skills of drivers in order to reduce running costs.

Drivers with a clean licence and no insurance claims may find a black box policy more expensive than their current insurance premium due to the cost of installing the technology.

However, for high-risk category drivers, such as the young and high mileage business drivers, or those driving in densely populated cities, a black box could help cut their insurance outgoings. For many in these groups, it will be a case of when rather than if they have to adopt this technology in their cars.

A spokesperson for the Association of British Insurers added: "Careful drivers have nothing to worry about from black box technology, whether they opt to have it installed or it is fitted as part of their insurance policy. Only bad driving will be penalised using the black box's information, so it pays to be a considerate, careful driver."