With all the hype in the media about car insurance black boxes we thought we would clear the air and explain how this technology works and explain why they could help reduce your car insurance premium.

What is Black Box car insurance?

Black box insurance works when your car is fitted with a small ‘black box’ device, about the size of a smartphone. The device records speed, distance travelled and the time of day or night that you are on the road. In some cases it is known as telematics or pay as you go car insurance.

What does the Black Box monitor?

The black box records a wide range of information from the vehicle. This may include:

• Speed
• Distance Travelled
• Location
• Time of Day
• Braking and Acceleration forces

The data collected is recorded and sent to the insurance company in real time.

How is the data used?

The data collected by the black box is used by the insurance company to build a profile of your driving habits and history. Many of these companies offer a secure web portal to allow you access to this data.

The data is used to calculate your insurance costs using your profile as a base line. They will take into account all data records in order to give you the best premium available.

Why choose Black Box Car Insurance?

For those drivers who typically pay much more for car insurance than average it may well be beneficial to opt for this type of insurance. This could include

• Young / Newly qualified drivers
• Drivers with motoring convictions
• Drivers living in high risk areas

Many companies offering this type of insurance claim to be able to reduce premiums by as much as £1000 a year. However you must also adhere to the strict terms, conditions and limitations of the policy.

By travelling outside of peak hours or via less busy routes many drivers will be able to reduce their premiums due to decreased risk involved during their journey.

Hidden costs

Before you opt for blackbox car insurance its very important to be aware of the “hidden” costs that can crop up. Installation of the device can cost anything from £100 and upwards.

The costs of installation are dwarfed by the penalties that could be written into the policy. These penalties are often in the range of £100 a time and can be for things such as

• Speeding
• Travelling outside of curfew times
• Exceeding mileage limitations
• Aggressive driving behavior

You may also have to pay for the device to be removed and reinstalled if you change your car.

Shop around for the best deals

How to get the best deal

As with all types of insurance products, it’s vital that you both shop about for your policy and fully understand the details. Headline savings of black box car insurance are very tempting for many young drivers but be careful to choose the right policy in case your driving habits or insurance requirements change.

There are many companies offering Black Box insurance comparison so please shop around and get fully clued up before you sign on the dotted line.

We’d love to hear your experiences with black box car insurance so please feel free to leave us a comment in the section below.

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