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Ever considered ‘Black Box’ car insurance?Back

BlackBox insuranceIf you are a young female or male driver, finding car insurance which you can afford can be really hard. With the average cost for a young driver aged 17-22 currently £1,187 per year, young motorists are finding that their insurance often costs more than the car itself.

This explains why the number of people taking driving tests has fallen by 19 per cent since 2005, while an estimated 250,000 young people drive without any car insurance at all.

Black box insurance cover was brought in to help combat this growing problem and help make car insurance more affordable for young drivers.

How it works

Drivers have a small box (about the size of a mobile phone) fitted within their car. The box uses telematics technology to help insurers assess the way different young people drive so that insurers can provide car insurance cover that more accurately reflects an individual’s driving habits.

Insurers can offer younger drivers a type of ‘pay as you drive’ car insurance, which could save them a lot of money in the long run. The black box, which is the size of a mobile phone, is capable of gathering the following information to assist with its insurance premiums:

  • Number of journeys made
  • Distances travelled
  • Types of roads used
  • Speed of the car
  • Time of travel
  • Levels of acceleration and braking
  • Any accidents which may occur

Drivers can access a secure website to find out how they are performing in each category, meaning they can make changes to their driving style as well as gain tips on how to improve their driver score and bring down the cost of their insurance.

In general, it is assumed that driving fewer miles on less dangerous roads as well as limiting night driving will all result in lower premiums. Policies linked to black box recorders charge car insurance premiums on a monthly basis, so that payments can be adjusted quickly to reward better driving.

What are the drawbacks?

Although the black box is a fairer system, the cost to have it installed could add to the cost of your insurance cover, however, it is highly unlikely this cost will outweigh your potential savings. Another setback is that if you cover a lot of miles, for example you have a lengthy commute to work, you may not see any savings at all, in fact, you might actually pay more than you would had you taken out a traditional policy. Premiums will also increase if you are not as safe and considerate a driver as your thought, although the system is set up to allow for the chance to rectify this first.

It is hoped that telematics technology will help to improve overall driving standards by rewarding safe driving with cheaper car insurance premiums, but before you take out any black box car insurance, make sure you compare the different premiums available to make sure that it is the right decision for your individual circumstances.

 

Posted by Leana Kell on 04/02/2014