Everything you need to know about black box insurance

Young driver
March 17, 2016

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Black Box Insurance, also known as “pay-how-you-drive” insurance, or its actual name Telematics Car Insurance, is based on individual driving habits.

What is telematics?

To give it its scientific definition, ‘telematics’ basically refers to technology that enables data to be sent over long-distances. In the case of black box insurance, it means that information related to your driving habits are stored in a telematics box fixed to your car and is then sent to your insurer for analyzing.

How Does Black Box Insurance Work?

Similar to the Black Box found in airplanes, an installed device records your driving patterns and analyzes speed, braking, mileage and cornering, relaying the information to your insurance provider as a means of adjusting your premiums to suit your driving style.

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The safer you drive and obey traffic laws, the lower your premiums will be. You can further reduce premiums by driving during off-peak travel times and travelling fewer miles.

Who Can Benefit From Black Box Insurance?

There are six types of drivers that can benefit most by choosing Black Box Insurance over Standardized Premium Assessments.

  • Young Drivers – People aged 17-24, who are categorized as most likely to submit “catastrophic claims”
  • New Drivers – Individuals with limited road experience, limited driving ability, and if you’ve recently obtained your driver’s license
  • Low Mileage Drivers – Those that drive fewer than 10,000 miles per year shouldn’t pay the same premiums as those that meet or exceed average yearly mileage consumption
  • Careful Drivers – Incentives for those that follow the rules of the road can vary by provider, but they’re worth looking into, why not be rewarded for being safe?
  • Slow Drivers – People that aren’t in a hurry to get somewhere, all the time! Those that obey speed limits and allow for safe following and stopping distances.
  • Daytime Drivers – Daytime driving is looked upon as generally safer, visibility is greater which increases the potential to avoid road hazards and obstacles.

What Are The Disadvantages of Black Box Insurance?

Some policies may contain restrictions, fines, or penalties as a result of your driving times, speeds, timing, or acceleration habits. Some examples of these restrictions include, but are not limited to the following:

  • Curfews or Driving Time Restrictions (i.e.: 11PM – 5AM) due to accident statistics during these hours, intoxicated drivers, and other safety factors.
  • Rush Hour Driving Penalties or increases in premiums due to increased traffic and accident likelihood
  • Dangerous Road Condition premium increases, roads that retain water or ice on the roadways, dangerous curves, or even potholes can cause vehicle damage or disruption to the flow of traffic
  • If your vehicle is used during business hours for business purposes, as well as when and where you drive can impact premiums
  • And some insurers charge for the Black Box and/or Installation.

Deciding if this type of insurance is right for your is a personal choice, however most people claim that their rates have dropped, and their driving safety increased as a means of reducing insurance expenses.

Here at bobatoo.co.uk we offer one of the widest choice of black box insurance policies in the UK so, head over to our car insurance deals page for more information.

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