What is black box telematics insurance?
Cheapest UK car insurance for new drivers. Telematics insurance, also known as black box insurance. If you driving well your insurance may go down.
How to find cheap car insurance near me? If you are confident that you are a safe and responsible driver, you can prove this to your insurance provider. Black box insurance, also known as telematics insurance, is a smart way to take advantage of technology to get a lower cost of insurance.
On the other hand, if you hit the roads like a rally driver, you may be faced with bad news, when you renew your car insurance and instead of a lower insurance price, you will find that the insurance has gone up significantly. If your driving is deemed dangerous, your insurance provider may even cancel your policy.
How does black box telematics insurance work?
When you buy a telematics insurance policy from an insurer, your car will be fitted with a black box. It can be a physical black box, a pluggable device, or it can work with a sensor on your smartphone. Black boxes are designed to encourage safer driving by giving you a better understanding of your driving habits, whether it's your speed, cornering, braking or vehicle handling.
All of this information, along with other information about your driving, such as distance traveled and time of day, is monitored in real time in a black box. You can view the details yourself, usually using a special login on your insurer's website or using a mobile app. Your insurance provider can use this information to calculate how good a driver you are and what your premium will be.
Another advantage of a telematics car insurance policy is that it usually comes with an anti-theft tracking device. This is one way the police can track your car if it is stolen. Impact warnings are usually also recorded in the event of an accident. This can be set to alert emergency services if a crash is detected.
What are the black box rules?
Certain rules may apply when installing a black box, but these vary by insurance provider. In some cases, there may be a curfew, which means you cannot drive during certain times (usually at night). Others may include limiting your mileage, which means you can only drive so much in a certain period of time. Such rules are in place to reduce your risk of being involved in an accident that should be rewarded with cheaper car insurance.
If you are unsure or do not agree with the rules that come with the black box, check with your insurance provider and try to come to an agreement.
How much does telematic car insurance cost?
Like traditional auto insurers, black box insurance companies charge quite a bit. These factors can affect how much your black box car insurance policy might cost. This includes things like your age, occupation and what you use the car for, as well as the age and make of the car.
The quickest way to find out how much you'll pay is to compare rates and prices online. You can easily view various policies by entering certain personal information. You can then compare what is included in the policy and how much it costs.
Black Box car insurance pros and cons
The world is not be just black or white. It's the same with car insurance - not to be good car insurance or bad car insurance. It mostly depends on the driver.
What are the pros of black box insurance?
- Cheaper insurance for most young drivers. For drivers who’ve recently passed their tests, black box insurance has significant appeal. It’s just a fact that insurance is more expensive for young drivers. A great way to avoid this is to use a black box, which will quantifiably measure driving habits and reward conscientious drivers with lower premiums. After a year of driving with a black box, it’s also not unusual to see premiums reduce by as much as 50% – a hefty reduction with serious appeal.
- The chance to improve your driving skills. We might like to think we’re careful drivers, but there’s nothing like the added incentive of knowing that sloppy driving could lead to a direct increase in insurance costs. Having a telematics policy can give you a helpful nudge to embed positive driving behaviour, forming lasting habits.
- Rewards and special offers. Some insurers offer vouchers and gifts as well as a reduced premium if you drive well.
- Proof you were driving within the speed limit. If you are involved in a collision, the telematics data can help prove you were driving legally.
- Finding a stolen car. If someone nicks your car a black box can help track it down.
- Protection if you have a crash. An often-overlooked feature of telematic insurance is the protection you may receive in the event of a collision. Telematics devices can send an automated alert to emergency services if you are involved in a crash, confirming your exact location. This can even be a lifesaver if you are unlucky enough to be involved in a serious incident.
What are the cons of telematics insurance?
- Curfews. Some policies don’t allow driving late at night and in the early hours of the morning, because these are times when crashes are more likely.
- Share. If you share your car with another driver, then obviously, their driving will also be taken into account since the black box doesn’t consider who is driving. Ensure they’re following the conditions that have been set out by the insurance provider.
- Penalties for night driving. Rather than a curfew, other policies count night driving as ‘bad’ driving. So if you are asking yourself “Should I get a black box?” and you regularly work nights, telematics insurance might not be for you.
- Restrict your journeys - if you frequently use your car, you’re more likely to get into an accident. You’ll be penalised for this and for going over your estimated annual mileage
- Bad driving costs money. Accelerate hard, brake late, and corner fast, and your insurer will know all about it. Ignore any negative feedback and your insurance cost could go up.
- Charge you for additional extras - some insurers charge a fee for installing the box and switching it over to new cars.
Also Read: Get the Best Car Insurance Deal