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Car insurance costs can often be through the (sun)roof, and young drivers often pay more than anyone even if they have a spotless driving record. Insurance providers consider young and inexperienced drivers to be the most at risk on the road, meaning they pay more for their premiums.
But what if you’re genuinely a good driver despite having little experience? Read our guide to see how telematics or “black box” car insurance policies work, and if it can reduce the price of your insurance below.
Black box or telematics car insurance is a specialised type of cover that’s designed to give good drivers cheaper car insurance. A black box device is attached to your car to record your driving performance, which is then used to determine the size of your premiums. The safer your driving, the less you’ll pay for cover.
On average, black box car insurance saves young drivers approximately £150 each year on their insurance premiums, but other drivers may also be able to save by switching to a telematics policy.
Black box car insurance customers must first have a black box device fitted to their car, which continually measures how their general driving performance using GPS technology. This includes how the driver handles braking and turning, as well as the car’s speed, distance travelled and the location the car is used.
This data is assessed by the insurance provider and given a score, which is then used to calculate the driver’s next insurance premium. The scoring system typically ranges from 0-100, with 100 representing the safest drivers.
Here are some of the benefits of black box car insurance:
Black box car insurance may be best suited to the following groups:
However, deciding whether black box car insurance is suitable for you depends on if you genuinely believe you’re a safe and careful driver, and if you’re willing to prove it. There’s no hiding once you have a black box device fitted to your car, as your driving habits will be monitored regardless of whether you drive well or drive badly.
If you drive well, you could see your premiums fall, but if you drive poorly, you may see your premiums increase. Black box car insurance may not be suited to drivers over the age of 25, and may end up being more expensive than regular car insurance.
Many car insurance providers offer black box or telematics insurance policies, and popular options include:
Age restrictions will generally depend on the insurance provider offering the black box policy. As long as you hold a valid UK driver’s licence, you should be able to find a black box policy to suit you. Some providers may have age restrictions, so make sure to check if this is the case when comparing policies.
If you recently passed your driving test and have little experience, you could avoid being automatically lumped into a high risk category by allowing your insurance provider to monitor your driving. If you continue to drive well, your insurance costs will reduce compared to regular car insurance.
If you’re an older driver in your 70s and have seen your premiums increase, a black box policy could help prove to your insurance provider that you’re still a good driver. Ultimately, by driving safely and proving your driving skills, you could see a significant reduction to your premiums.
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