There’s significant evidence that black box policies mean savings on car insurance for the majority of new and young drivers.
A black box, or telematics system as it is also known, works by recording and monitoring your manner of driving. So if you drive, break or corner fast, for example, it’ll impact on the chances of you making savings.
An insurer may even cancel the policy if they consider your driving to be dangerous. Many operate a three strikes and you’re out system for serious breaches of what would be considered sensible driving.
How big are the savings?
A recent report on telematics found that a black box insurance policy provided the most affordable quotes for 70% of 17 to 20 year olds (following analysis of insurance quotes between December 2019 and March 2020).
The average costs of a telematics car insurance policy for 17-24-year-olds was £1,483, the analysis suggested.
The average savings with a ‘black box’ policy for 17-20 year olds was £1,078.
A total of 19% of all car insurance sales to under 25s via the site were telematics policies, the report said.
Some policies offer monthly adjustments to premiums based on how well you are driving, whilst others include adjustments only in the annual renewal price.
What are the downsides of telematics policies?
Some people feel the tracking technology intrudes on privacy and are morally opposed to it.
In addition, there can be restrictions on your freedom to drive at certain times of the day which can be a burden for some people. It’s vital to read the conditions related to the particular policy you have a quote for to ensure it meets your needs.
Some policies may not allow policy holders to drive after dark, for example, when research shows risk of accidents may go up.
It’s worth remembering that in some countries these restrictions are actually Government imposed to reduce collision rates. New drivers are awarded a graduated driving licence that means they have to stick to specific driving rules for a specified period, such as not carrying passengers under a certain age.
Also, as mentioned, if your driving falls below the necessary requirements, you’ll pay more.
Should I opt for a black box policy?
Everyone must make their own decision based on their own requirements, preferences and the quotes received.
It’s worth remembering that it’s not just a matter of cost. There is some evidence to suggest that having a black box policy leads people to be more aware of their driving style and may mean they stay safer on the roads.
Whatever your decision, enjoy the new found freedom driving brings, but take care out there!
