UK vehicle-tracking systems maker Quartix has signed a contract to provide 1,200 telematics systems a month to Coverbox, a pay-as-you-drive insurance brand.

Coverbox is a so-called “smart insurance product,” which helps insurers monitor driving behavior through the use of telematics and data analysis. The service also lets insurance companies charge policyholders for vehicle insurance based on how they drive, how much they drive, where they drive and when.

“This type of insurance is only possible through the advent of telematics designed to be deployed for insurance purposes,” Quartix said in a press statement.

Quartix’s involvement in the insurance process starts once a customer places an online order for insurance through Coverbox. Quartix receives customer information and, subsequently, installs its device in the car. It then registers its device with Wunelli, the vehicle data management company that owns Coverbox.

Through the system, Wunelli can monitor driving habits and behavior and verify information supplied by customers when they applied for insurance. Using GPS and other data, the Quartix telematics system monitors aceleration, braking, cornering and speeding . These data can be used to assess the accident risk level posed by a policyholder’s driving behavior.

Wunelli doesn’t provide insurance itself. Through Coverbox, a panel of insurance companies provides the actual pay-as-you drive insurance cover. These insurers include The Co-operative, Allianz Insurance, Equity Red Star and Groupama Insurances.