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Black Box Insurance - Is It Really Worth it?

So is it really worth getting a Black Box?

Black boxes have been around for a while now and insurance companies have been trying to encourage younger drivers that having a little black box in their car will be beneficial when it comes to their insurance premiums

Image of a black box

Getting your first car, and the independence that it brings can offer a fantastic sense of freedom to many young drivers. Unfortunately, this new-found sense of freedom can mean less attention being paid to the driving, and figures show that one in five young drivers will end up having an accident within their first 12 months of being on the road. Insurance premiums for these drivers which would have already been relatively high are suddenly pushed up and they find themselves looking for ways in which they can reduce these premiums.

BIBA, the British Insurers Brokers’ Association says that the sale of car insurance policies which include the use of black boxes have increased five fold over the last couple of years.

What is a black box?

Black box, which is sometimes referred to as telematics, involves having a small a small device that is about the same size as a smart phone fitted to your car. This device then records various statistics about your driving for your insurance company. The data it collects includes speed, distance travelled, what time of day, or night, you are on the road, it can even record information on the types of roads you use. All of the information is then used to build up a comprehensive driver profile. With some of the black box devises it is possible to access a secure website and look at the data to see how you are performing, this gives you the opportunity to make changes to your driving habits and where possible improve your score so that you can reduce your insurance premiums.

How do insurers use the data from the black box?

Every insurer will use the data in a slightly different way to determine whether someone is a good or bad driver, however most will take the following information into account:

  • How you brake – it is frowned upon too break sharply

image of young driver benefiting from a black box

  • How you corner – you should take corners gently

  • How consistent your steering is – do not veer suddenly

  • What speed you drive at – you should make sure you stay in the limits

  • When you drive – night-time driving is considered to be more dangerous

  • Your mileage – lower mileage usually leads to lower premiums

Is it worth it?

This is the big question and for some people they may not in fact be worth it. If you need to drive quite a distance to get to work and if you do drive at night then a black box may not save you much, if any, money on your premiums. It is certainly worth shopping around when you are looking for car insurance as it may be possible to get a cheaper policy that suits your driving needs without resorting to a black box.

A black box can be used in your leased vehicle from Ultracar.