The Pros and Cons of Black Box Car Insurance

Black box car insurance is a popular choice for drivers who are looking for more control over their car insurance costs. However, whilst black box insurance can provide potential savings and encourage safer driving, it might not be for everyone. In this blog, we explore the pros and cons of black box car insurance to help you decide if it’s the right option for you.

What is black box car insurance?

Black box car insurance, also known as telematics, is where your car insurance policy is connected to how you drive. The black box, which is about the size of a mobile phone, will be fitted into your car by your insurance provider, and it will then transmit data about your driving habits back to them. Your car insurance premiums will then be calculated based on how well, or not well, you drive, which can see costs going up or down throughout the year.

Different car insurance companies will use different performance indicators to calculate your premium, but typically they will monitor your speed, your mileage, your braking, your steering, and the time of day you drive. If you frequently go over the speed limit, brake too hard, take corners too quickly, and drive at night time, you could see your car insurance costs increase. However, if you stay within the speed limit, brake gently and in good time, take corners carefully, and stick to driving in the daytime, your costs will stay low.

Often you will also be able to view your own metrics, usually on a portal or platform provided by your insurer, where you’ll have a unique log-in. This allows you to monitor your own driving behaviour so you can see where you might need to improve.

Pros of black box car insurance

Black box car insurance has a number of advantages for drivers.

Possible cheaper premium

One of the main draws of black box car insurance is that many drivers see lower premiums when they have one installed. Policies with a black box are typically cheaper than those without, and you could see your costs fall even more if you drive safely and your provider adjusts costs throughout the year. A black box can be a great way for young drivers especially to access lower premiums, as this group usually faces extremely high car insurance costs.

Improve driving habits

Another advantage of black box car insurance is that it can help to improve your driving habits and lead to safer driving. Many policies with black boxes have live, or nearly live data, so you can see how you’re performing. It will be easy to see where you might need to polish up your habits a little bit, whether that’s through keeping to the speed limit or taking corners more carefully.

You’ll also likely be much more aware of how you’re 9driving when you’re in the car, which can encourage you to drive more safely.

Deter thefts

The black box includes a GPS, which is used to track your driving. However, this can also be used to track your car if it is stolen, meaning your car will usually be able to be recovered. Some black boxes aren’t visible, so they won’t be able to be removed by thieves, and whilst they might not be deterred if they can’t see the GPS tracker, you’ll at least be able to locate your car. Other black boxes might be visible, so they ca put off would0be thieves who don’t want to deal with a tracker.

Provide evidence in an accident

If you’re ever in an accident that isn’t your fault, the black box could be used to prove your innocence. Data from the box can be used to prove you were driving safely, such as showing you were driving slowly, braked in good time, or even that you were parked when the accident took place.

Cons of black box car insurance

There are also a few possible downsides to black box car insurance.

Possible increased premiums

If you constantly drive dangerously, such as exceeding the speed limit and braking too hard, you could find your premium increases. Some providers will implement fines for bad driving habits, which could amount to a lot if you continue with bad driving habits. If you drive especially badly, you could even see your car insurance cancelled, which could see any future premiums increased if you have to declare this to your next provider.

Driving curfew

Many black box car insurance policies will view driving at night as a negative habit, as a lot of accidents happen at night time. Usually, this counts as between 11pm and 5am, so if you work at night or regularly drive between these hours, you could see this having a negative impact. Of course, if all your other driving habits are up to a good standard, you might not see fines, but this would depend on how your provider calculates the premiums.

Some insurance providers are moving away from this rule though, so it may be possible to find a provider that will give you black box insurance without a curfew.

Restrictions to mileage

Many black box insurance policies will have a restriction on how many miles you can drive in the year. So, if you know you will be driving a lot, it may be better value to purchase a traditional insurance policy. Black box insurance may give you the option to buy extra miles, but this could end up being expensive.

Additional drivers

Many young drivers might have an additional named driver on their car insurance, as they may share the car with a parent. As the black box can’t tell who’s driving and is just concerned with how the car itself is being driven, this could see your car insurance costs increased. If your additional named driver isn’t as careful as you are, their habits will still be tracked and attributed to you, negatively impacting your data and your premium.

Should I get black box car insurance?

Black box car insurance can be a great choice for young drivers who are looking for cheaper car insurance. As long as you know you will drive safely and won’t be affected by restrictions to your mileage or journey times, a black box policy could be right for you. However, if you frequently drive at night or long distances, you may be better off shopping around for an alternative policy.

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