YOUNG DRIVER SCHEME

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04.08.2016 What is black box insurance

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Black box insurance, or “telematics car insurance” as it’s also known; monitors driving style, records behaviour, and rewards careful drivers with lower premiums.

It involves a black box being fitted to your vehicle which uses satellite technology to assess speed, braking, acceleration, cornering and the time of day journeys are made. Some black box insurance policies also operate a curfew with an excess premium charged if the car is used during dangerous night-time hours.

The data is transmitted to the insurance provider by GPS and the company can tell how likely a driver is to make a claim.

What are the advantages?

Black box car insurance policies can be particularly advantageous for young drivers who can find it harder than experienced drivers to get affordable cover – and in some cases, to get cover at all. This is because insurers calculate policy costs according to statistical risk, with many insurers deeming young motorists too high a risk based on the accident statistics.

With a black box insurance policy, a young driver can avoid the high initial one-off fee that you would pay for standard cover. While there may be a deposit to pay for the black box, this will come nowhere near close to conventional fees.

What are the disadvantages?

While black box insurance has been hailed as one of the only ways to obtain affordable car insurance for young drivers, novice motorists should be aware that some policies will cost more than traditional cover. This is why it is still so important to shop around – and not to automatically assume that a black box insurance policy will be cheaper.

And, telematics technology won’t work for everyone. Drivers who have a higher annual mileage could end up paying more than they would for an ordinary policy.

Shop around for black box car insurance policies

When buying any car insurance policy, including a black box insurance policy, you need to do your research by shopping around.

The easiest way to compare prices and premiums right across the market, and to see if you can make a saving by opting for a black box car insurance policy, is by using a price comparison service such as MoneySupermarket.com. In just a few clicks, you can find the right policy – at the right price.

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