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There has been substantial coverage in the news relating to black box insurance and whether it is set to benefit drivers or not. Certainly, the idea of putting a black box in your car is certainly a good one, if it’s going to save you a substantial amount on your premiums. But for some drivers, it may prove to be more of a hindrance.
Black box insurance involves a ‘black box’ being installed in your car. The box monitors how and when you drive and relays this information back to the insurer. Premiums are then calculated based on the type of data received.
For further information on telematics car insurance click here, or see below for Trusted Dealers’ round-up of 6 drivers which are set to benefit the most from black box insurance.
Young drivers aged between 17 and 24 are the band of motorists who are most likely to be involved in an accident, this means that premiums for drivers within this age group remain astronomically high. Black box insurance enables insurers to tailor insurance premiums to suit individual drivers, rather than solely relying on statistics, so providing young drivers can demonstrate responsible driving skills, their premiums will be lower than conventional cover.
If you only drive a few miles a week, paying the same insurance premiums are drivers who cover thousands of miles in the same timeframe doesn’t make sense. Black box insurance policies allow you to choose the amount of mileage you drive per annum, and your premium will be adjusted accordingly. As long as you don’t exceed this number, you won’t pay anything extra. Insurethebox and other insurers also offer top up miles which can be purchased if you think you might exceed your annual mileage.
If you’re a particularly cautious driver, black box insurance could work well for you. For example, some policies offer a review every 3 months where a discount can be applied for good driving. Insurance company, Ingenie, has claimed that 70 per cent of their customers have benefited from a good driving discount, so it is definitely well worth it.
If you’ve only just passed your driving test, no matter how old you are, your insurance premium will be higher, mainly because an insurer is aware that your experience on the roads is very limited, and therefore classes you as a higher risk to be insured. Telematics premiums could help because they are based on how and when you drive. Some insurers will offer you a lower rate if you agree to only drive within set times during the day, for example, avoiding driving late at night or during rush hour. Points can also be awarded for safer, responsible driving.
Black box insurance will appeal to slower drivers, although this doesn’t mean that crawling along the roads is acceptable either. It means that you should take note of speeds limits and stick to them. Speed can also be assessed on your driving techniques and habits, so it pays to take good note of these too. For example, insurers may assess whether you take corners too sharply or apply your brakes too hard too often.
Insurance companies regard driving late at night and in the early hours of the morning as riskier than driving in the daytime, so drivers who regularly drive at night may not be suited to black box car insurance as their premiums will be quite high. Some insurance companies have even installed curfews on their black box insurance policies so that drivers who break the rules will be fined or see their premiums rise. If you’re mainly a daytime driver though, black box cover could appeal as you will be rewarded for driving during “low risk” periods.