Table of Contents
- What is black box insurance?
- How does black box insurance work?
- How much does a black box reduce insurance?
- Is it cheaper to insure a car with a black box?
- What does black box insurance monitor?
- Black box insurance rules
- Black box insurance pros and cons
- Should I get black box insurance?
- Black box car insurance FAQs
Black box insurance (also known as telematics insurance) can be popular with drivers facing high car insurance costs, such as new or younger drivers, but it could be an option for anyone. Prove yourself to be a good driver and black box cover can bring the price of your cover down. Here’s all you need to know about black box car insurance, including how telematics cover works, and its pros and cons.
What is black box insurance?
Black box insurance is a type of car insurance which allows your insurer to monitor how you drive via a small device in your car. If the data from the device suggests you are a safe, careful driver, you could be rewarded with cheaper premiums. Some insurers refer to black box car insurance as telematics insurance.
How does black box insurance work?
- Install the device. The insurer sends you a ‘black box’ you can fit yourself or you may need to visit a garage to get it installed. Sometimes the device is simply an app you download to your phone.
- Data is shared with your insurer. The device tracks your movements and collects other data to share with your insurer so it can assess your driving habits.
- You get a driver score. Your insurer uses the information to calculate a score based on your habits as a driver. Factors such as how far, when and where you drive are taken into account, along with how you drive. You may be able to see your driver score on your app.
- Tips to improve your driving. Your insurer may give you feedback and advice on how to become a safer driver. Any particular concerns the insurer may have over your driving could also be highlighted.
- Your premium is reviewed. When your cover is due for renewal, the insurer will offer you a premium that it believes reflects your driving habits. The safest drivers usually get the cheapest black box insurance.
Where are black boxes fitted?
Some black box devices need to be near the engine, so may be fitted on a car’s battery or behind the dashboard, while others sit on the windscreen or elsewhere within your car. Check with the insurer to find out – some offer various options – but devices are usually pretty small and discreet.
How much does a black box reduce insurance?
The discount you could potentially earn through black box insurance depends on the insurer and how you drive while the policy is in place. Insurance broker Adrian Flux suggests a safe driver may save up to 60% when renewing, but there are no guarantees your premium will go down. If an insurer considers you to be an unsafe driver with bad habits, your premium is likely to rise, not fall.
» MORE: Tips on how to get cheap car insurance
Is it cheaper to insure a car with a black box?
Black box car insurance could result in lower premiums if you prove yourself to be a careful driver. However, it’s important to check the cost of all types of car insurance, including without a black box, as it could still be cheaper elsewhere.
» MORE: Compare car insurance
What does black box insurance monitor?
The exact data measured by black box insurance will differ between insurers, but some of the metrics typically monitored includes:
- Speed – to see if you keep to the speed limits
- Braking – to check how early, or late, you hit the brake pedal
- Cornering – to see if you take corners carefully at a sensible speed
- Acceleration – to check whether you’re quick to pick up speed or take it easy
- Distance – to establish the number of miles you drive
- Timings – to see what time of day you are driving
- Location – to monitor where you drive
- Frequency – to check on the number of journeys you make
- Mobile phone use – to check if you use your phone while driving.
Black box insurance rules
Most black box policies don’t have many specific rules beyond what you’d usually expect from a car insurance policy, though it is always important to check the terms and conditions of any policy carefully.
The main “rules of black box insurance” referred to here are those things you can do as a black box driver to bring the cost of your cover down. These include:
- Staying within the speed limit.
- Keeping to the number of miles you said you would drive.
- Avoid driving late at night.
- Not tampering with the device and making sure it is always on.
- Braking gradually, in plenty of time, rather than sharply.
- Accelerating steadily, and not too sharply.
Black box insurance pros and cons
Advantages of black box car insurance
- Potential to save on your car insurance
- Encourages safer driving
- May deter theft or the device could help locate your car if it’s stolen
- Device could prove you were not at fault in an accident
Disadvantages of black box car insurance
- Poor driving could see the cost of cover increase
- May be restrictions on when you can drive
- May be limits on the number of journeys you can make
- A less careful named driver could negatively impact your driving score.
Should I get black box insurance?
Black box insurance is often used by newer drivers seeking to reduce car insurance costs, but any driver who maintains a careful driving record could potentially see savings. It may also provide an incentive to improve your driving and take more care behind the wheel.
However, black box insurance may not be the best option for everyone. For instance, your driving score may be marked down if you drive a lot of miles, or if you regularly drive at night.
» MORE: Young driver insurance
Looking for a particular type of car insurance?
Not all drivers are the same. Whether you’re new behind the wheel, looking for short-term cover, or want something else, you can explore the different car insurance options below.
Car Insurance to Suit You
Finding the right type of car insurance for you is a must. Just as important is shopping around and comparing quotes to save where you can.
Black box car insurance FAQs
Yes, you could see the cost of black box insurance increase if the data suggests to the insurer that you’re not a careful driver. Your premium could also rise if the device shows you’re driving more than you said you would, or at times of the day which could hurt your driving score. Simply having a black box installed does not guarantee the price of your cover will come down.
Yes, an insurer could cancel your black box insurance for various reasons, including if you consistently drive badly, break the speed limit, don’t pay your premiums, or break the terms and conditions of the policy. Insurers will usually take the severity of any driving offence into account and may operate a ‘strike-system’, giving you the chance to act on feedback and learn from your errors.
Yes, some insurers offer black box insurance for vans.
» MORE: Compare van insurance
Yes, plenty of insurers offer black box insurance that doesn’t impose a curfew. However, regularly driving at night could still harm your driving score, which may cause your premiums to rise.
Image source: Getty Images
About the Author
Dive even deeper
How to Check if a Car is Insured
Car Insurance Groups List & Costs
