Is black box insurance cheaper?
Black box insurance (also known as telematics insurance) uses a clever bit of technology to monitor your driving habits and share it with your insurer.
‘Why on earth would you want to do that?’ we hear you ask.
The answer is simple: to get lower premiums.
This guide will run you through how black box insurance works, just how much cheaper it is, and the drawbacks of it.
In this article:
- How black box insurance works
- Is black box insurance cheaper?
- The benefits of black box insurance
- The drawbacks to consider
- Who should consider black box insurance?
Just looking for the cheapest possible policy as a young driver? Try our black box insurance comparison tool and potentially save hundreds of pounds
How black box insurance works
Black box insurance involves installing a small device in your car or using a smartphone app to track your driving behaviour. This technology monitors:
- Speed: Are you going over the speed limit or 20 mph under it? Make sure you’re not driving too fast or too slow.
- Braking: Do you brake smoothly, or slam on the brakes at every junction?
- Driving times: Are you driving during safer periods, or late at night when serious accidents are statistically more likely?
- Mileage: Do you drive a few miles or a few hundred miles per week?
If you’re a low-risk driver, meaning you adhere to the speed limit, brake smoothly, drive at safe periods, and don’t drive too much, black box insurance could significantly lower your premiums.
Is black box insurance cheaper?
Traditional policies often charge higher premiums for younger drivers due to perceived risk. So the goal of black box insurance is to provide evidence that you’re not a risky driver.
But how much does it actually save you?
Unfortunately, there’s no set figure. Your premiums still depend on a lot of factors out of your control, like your gender, occupation, and even your postcode.
Some young drivers report saving up to 60% on their insurance by using a black box. For older, more experienced drivers, the saving is quite a bit lower.
The best way to find out how much it will cost you is to use a comparison tool, like the Young Car Driver comparison. This allows you to search for policies from over 120 providers, including black box policies.
Try the Young Car Driver comparison today, and get quotes in just a few minutes
The benefits of black box insurance
- Fair pricing: Premiums are based on your actual driving behaviour, not just demographic factors. You can actually have some control over your premiums.
- Encourages safer driving: While it can feel like Big Brother is watching, driving safely isn’t just important for saving money: it’s important for avoiding accidents.
- Feedback: Some insurers provide insights into your driving, helping you improve. For instance, you might not realise you’re braking harshly at junctions. So by resolving this, you’ll reduce your premiums, and also take better care of your car!
The drawbacks of black box insurance
- Privacy concerns: Continuous monitoring may feel just too intrusive to some drivers. For many young drivers, black box insurance can cause some performance anxiety on the road: are you driving too fast? Braking too hard? All of this can take away from the often relaxing and freeing experience of driving.
- Driving restrictions: Some policies may impose curfews or mileage limits. You might be penalised for driving too much, or at risky hours.
Who should consider black box insurance?
Black box insurance may be worth it if:
- You’re a young or new driver facing astronomical insurance costs.
- You consistently practice safe driving habits anyway: so why not benefit from lower premiums?
Find the cheapest insurance quote for you
At Young Car Driver, we specialise in finding affordable car insurance tailored to young drivers. Whether you’re interested in telematics or other options, we’ll help you find the best coverage at the best possible price.
Ready to start saving? Get a quote now.