What is black box insurance?

Black box insurance uses telematics (the black box) fitted to your vehicle by the insurance company to measure vehicle speed, cornering forces, driving habits and the time in the day that you drive most frequently.

That way the insurance company can gather information on you driving to determine whether you are a low or high risk driver. Low risk drivers will normally get a cheaper premium next time they renew and high risk drivers will probably get lots of reminders about their poor driving habits!

You will get a score every week or month for your driving, the higher the score the better your driving, low scoring will eventually attract the attention of the insurer. Rewarding good and safe driving is the key to this kind of policy.

Does black box insurance make my premium cheaper?

Black box insurance in theory can help drive down the price of your insurance premium but other factors depend on that too, such as the cost to fix your vehicle in your area, crime rate, population density and your age. 

A lot of young drivers are attracted to cheaper black box insurance because the initial quote they receive tends to cost less than “no black box” cover that may seem out of reach. Insurance companies like it because they feel it helps temper young drivers' desire to go fast, be reckless and drive around in the middle of the night!

How much does insurance cost with telematics or Black Box Insurance?

We run a quote for a 22 year old driver who passed their test two years ago insuring a VW UP! 1.0l 2014 with a value of £2,000. The cheapest quote we found was £872.73 per year and £80.73 per month. This quote is with no previous telematics data so there is a possibility to get a quote for less the next time they renew car insurance with black box telematics.

To find out for yourself get a quote with Quotezone to see what the brokers are offering. The best way for a young person with little experience to get insurance is to shop around and get as many comparison website quotes as possible.

Can insurers cancel my policy with black box insurance?

Yes they can and even at the end of the policy they can recommend you find another insurer. Telematics or Black box insurance is not for everyone, and young people who are attracted to it need to weigh up the pros (cheaper insurance) with the cons (cancelled policies).

Some young drivers find that insurance is so expensive they have no alternative than to go for a cheaper black box policy if they want to have the freedom that driving a car gives them. There is a compromise and that is sensible driving habits at the right time.

If you do find out that the insurer is about to cancel your policy you might want to try and do it before they get the chance because cancelled policies can be flagged when you try to get insurance somewhere else.

What time of the night is discouraged for black box policy holders?

Young people driving between 10pm and 4am tend to be more reckless drivers and as a result there are more crashes between these hours than during the day. Insurers call these hours curfew and if you repeatedly break curfew you will get a low score from your insurer if you are using telematics or a black box.

Is black box insurance just for young people?

No, black box insurance is for everyone who thinks that it will help them drive down the price of their insurance premium because they are deemed a high risk driver or someone who has recently made claims. For example, if you have an unspent conviction related to driving or not, this might be your way to get back in a car.

Whether it is right for you will depend on how much the premium costs are and if you feel you can adhere to the safe driving policy set out by the insurer.

What are the disadvantages of black box insurance?

Telematics insurance can be restrictive if you want to;

• Do a lot of mileage - usually there is a limited mileage policy per year.
• Drive at night - 10pm to 4am is curfew. 
• Break the speed limit - Think of it like having a speed camera in your glove box.
• Drive fast around roundabouts - Gran Turismo and Black Box insurance don’t mix.

If you drive safely and don’t break speed limits and you are a young or at risk driver then getting a cheap insurance policy might only be possible with a telematics (black box). No black box might mean no driving so you need to make that call.

What are the alternatives to black box insurance?

The obvious alternative to telematics is ‘no black box’ insurance and there are comparison sites out there who specifically try to find you the best quote without black box insurance.

Technically there are variations of the black box, including ‘plug and drive’, only app based using the phone's GPS and mileage only insurance. The best for you will depend on your circumstances.

If you are only going to do limited mileage per year and can park the car in a safe place, insurance per mile could be financially more beneficial to you than black box insurance.

Disclaimer: This information is intended for editorial purposes only and not intended as a recommendation or financial advice.

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