If you are a young driver, or you have a young driver in the family, you may well have heard about the black box. For young or inexperienced drivers, car insurance can be eye-wateringly expensive. We look at how a black box can save you money on your insurance.
Who uses a black box?
The basics of a black box are simple: if you can prove that you are a safe driver, your insurance premium will stay lower. Regular reports can tell you how you can improve your driving, and limits on how much you can use your vehicle (and when), and how many miles you go can help you to save even more on your insurance. The black box is designed for drivers with motor convictions and young or inexperienced drivers; people who traditionally have very high insurance premiums. More than half of black box users are aged 17-19.
Types of black box
A black box is a piece of telematic technology that is installed in a car to monitor your driving using GPS. There are, however, two other types of telematics; one is the plug and drive, which also uses GPS technology, but which can be plugged into the car’s cigarette lighter rather than being installed. The third telematics option is the smartphone app; you simply download the app to your phone without needing any additional technology.
Installing a black box
If you choose an insurance policy that requires a black box, your insurer will probably send a mechanic or black box installer to fit the new technology. They may need to see your logbook or driving licence; it is a good idea to have them ready just in case. The black box itself is small and is usually installed somewhere discreet so it won’t interfere with the interior of your vehicle.
Saving on your insurance
A black box can help you to save on your insurance policy. Once activated, your insurer will be able to track your driving habits and collect data on how high risk you are. This data will have an affect on your insurance premiums; if you drive responsibly, safely and at a good speed, your insurer will reduce your premium accordingly. If you are prone to erratic driving, your premium may be increased; whether this is done monthly or annually will depend on your policy.
What does your black box tell your insurer?
The black box tells your insurer the following information:
- How erratically you drive (based on your braking)
- Speed
- Distance you drive
- When you drive
- Where you drive
If your black box statistics lead you to increased insurance payments, it may be worth taking additional driving lessons from a local driving instructor; they may be able to point out areas where you can improve your driving and save money in the long term.
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