Have you thought about how black box car insurance could affect your premium?
This type of insurance uses telematics to link how well you drive to how much you pay.
Black box car insurance is especially useful for younger drivers who want to reduce their premiums as quickly as possible.
How does it work?
There are three different types of black box car insurance:
· Fitted black box – Your insurer fits this to your car and uses GPS to track your driving. An approved mechanic is usually employed to do this.
· Plug and drive – You receive a device which plugs into your cigarette lighter or car charging port. This uses GPS to track your driving.
· Smartphone app – You install the app on your phone and its GPS system tracks your driving.
Where an extra device is employed, it’s generally the size of a mobile telephone. It is placed in a discreet location.
All systems collect information on your driving. This includes, when, where, and how fast you drive, how much time you spend on the road, and your driving style, such as how you take corners and brake.
All of this builds a picture of the risks you take when you drive and whether you stick to the speed limit.
Generally, you will be able to see your driving statistics online.
This allows you to assess your driving strengths and weaknesses and work to improve them.
The data is only used by your insurer to calculate premiums. It’s only made available to police during a criminal investigation.
The insurance cover has the usual three categories – third party, third party, fire, and theft, and fully comprehensive.
Who needs black box car insurance?
It’s perfect for groups of drivers which insurers see as high risk.
This includes drivers under 25 and drivers with motoring convictions.
Having data about how you drive can help show insurance companies that you are less of a risk than they had imagined.
For a driver aged 17 to 19, the average annual insurance premium without telematics is £2079, research by one insurance provider shows. With telematics, that average falls to £1224.
However, there are fees for installation, removal, transfers, or repairs. So, find out what they are and factor them into any savings you’re likely to make.
You could make extra savings by choosing fully comprehensive, paying annually, choosing a car in a lower insurance group, paying more excess, keeping your car safe in a garage at night, and renewing cover early.
What are the myths?
The black box will impose a curfew on you – You won’t be under any curfew but regular journeys late at night could impact on your premium as it’s statistically more dangerous than driving during the day.
You’ll be penalised for long drives – Again, this will only impact your premium if this is a habit as the longer you’re on the road, the higher the risk of an accident.
Are you looking for a new car in a low insurance group? Take a look at our new car range or send us a message here.