If you're like 99.9% of people, then you're probably after cheaper car insurance.
Whilst there are many other ways to do just that, signing up for a black box policy is one of the most effective.
And as your friendly neighbourhood leasing experts and helping hand on all things automotive-related, we think we have a duty to tell you about how it works.
Get ready to save some serious cash.
What is a Black Box?
Otherwise known as a telematics device, a black box is essentially a small GPS-tracking device that's fitted inside your vehicle.
A relatively new type of insurance, black box car insurance is designed to measure how well you drive so that your provider can give you a personalised, performance-based quote on your premium. The safer your driving is, the less you will have to pay.
How Does Black Box 'Telematics' Insurance Work?
It's a simple equation: the safer you drive, the less you pay for your insurance.
Black box insurance policies use technology to monitor your driving behaviour, what kind of driving you do, and how often you do it. When the engine starts, the box 'wakes up' and starts recording data.
As you probably already know, insurance is all about 'risk', so the black box allows the insurer to offer a more detailed picture of your driving habits in order to determine just how much of a 'risk' you really are. So driving with a black box is your way to say, 'Hey, I'm a safe driver, give me lower premiums'.
Most black box insurance providers have very specific parameters to determine whether you are a reliable driver, such as speed, braking, time of driving, etc. It can vary a little, but those are the main factors.
How Do You Fit a Black Box?
Pretty easy. Nothing too technical in the process.
The average black box device is self-installable and come with a brief 'how to' guide. They usually receive power from your car's lighter or a similar source and are positioned in discreet locations, such as behind the dashboard, near the cup holder or near the engine/battery. Chances are you'll barely even notice it whilst driving.
Some more advanced types of black boxes might require professional installation, but the average one is fairly hassle-free and easy to set up.
Is Black Box 'Telematics' Insurance Cheaper?
Yes. It's usually cheaper than conventional insurance, but not always.
The older you get, and the more years of driving experience you have under your belt, the less effective black box insurance will be at cutting premium costs. It's by far the most cheapest for younger drivers.
And speaking of younger drivers . . .
Black Box Car Insurance for Younger Drivers
When telematics black box policies were first introduced, they were aimed mainly at inexperienced or young drivers. That's because these demographics (particularly young drivers under the age of 25) tend to pay much more car insurance than other groups as a result of making more claims on their insurance. Therefore, black box car insurance was intended as an incentive, and it still is.
Nowadays, as well as an inexperienced or young driver, black box policies are also increasingly aimed at other 'high-risk' groups like the elderly.
Of course, it's annoying being 'blanketed' into an insurance cost category based on your age or experience, even if you know you're a really safe driver. So like we said, black boxes are a way to prove that you're just as good a young driver as you think you are.
What Details Do I Need to Get a Quote?
The same details you'd need for any other car insurance policy. These are usually:
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Driving license details
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Personal details like name, address, occupation, date of birth
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Estimated annual mileage
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Car details like make and model and registration number
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Claims history, including points on your licence and driving convictions
How Much Does Black Box Car Insurance Cost?
Even just signing up for black box car insurance will often see a cheaper premium, but it can depend partly on your age as well as other factors like your occupation, what you use your car for, along with the age and make of your car.
How is Black Box Driving Behaviour Monitored?
Most black boxes track acceleration, braking, cornering, trip duration, and whether and how often you drive at night. All of which are used to calculate your insurance costs a year down the line.
Each insurer will have slightly different metrics for deciding how safe a driver you are, so always check the metrics your individual policy will monitor. However, most will take into account the following:
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Braking
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Cornering
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Speed
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Steering
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Driving hours
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Mileage
Whichever categories the black box insurer uses, you will have a 'score' on each category, which all contribute to one larger score. Checking your score let's you see which areas of driving you are falling short in, therefore enabling you to improve your score even further.
Speaking of which . . .
How Can I Check My Score?
You can check your driving score through your insurer's website or smartphone app. Simply follow your insurer's instructions to download the app on your smartphone. There you will see your driving score and all the data that's been collected by your black box, enabling you to perfect your driving habits and get cheaper car insurance in the future.
Some apps even go the extra mile by encouraging you to build 'streaks' for safe journeys and achieve badges, as well as save money at renewal.
How Does Black Box Insurance Reward Good Drivers?
With black box car insurance, your driving will be measured and you’ll be rewarded for consistent positive behaviour. Black box insurers can reward you in a number of ways, including:
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Discounting your premium after a year (or even partway through) if you have a good track record of safe driving
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Bonuses e.g. retail vouchers
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Free pizza or coffee (yes, really)
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Offering money back off your premium
What If I Drive Badly?
It's a two-sided coin, after all, so drive badly and many insurance providers will increase your premium.
Some may even cancel your cover altogether if you drive poorly or are caught breaking the speed limit on a regular basis. You might first receive a warning, and then, if that goes unheeded and your bad driving continues, your policy will be cancelled.
What Happens to My Data with Black Box Insurance?
The whole point of black box car insurance is to constantly track your behaviour behind the wheel in order to analyse how you drive, and that information is then relayed to your insurance provider.
Naturally, this often leads to concerns over the security of your data, but data protection laws are there to protect you, so you're in good hands.
However, do be aware your information could potentially be shared to third parties working closely with insurers, such as claims professionals. Your data could also be handed over to the police if they have a court order asking for it or if you are suspected of committing fraud.
Can A Black Box Deter Theft?
Of course, it's no substitute for other devices specifically geared towards stopping theft, but yes, black box technology can help in the event that your car is stolen.
That's because the black box in a telematics car insurance policy usually comes with an anti-theft tracker. This is just one way that the police can track your car if it is stolen.
Can the Black Box Help Me in an Accident?
Potentially, yes.
Insurers aren't too interested in tracking your daily whereabouts, but because black boxes have GPS installed, insurers could be able to receive a warning message when your car is in a collision. The insurance company can then notify the police and the emergency services to alert them as to your whereabouts.
In addition, insurers can also use the black box data to determine how and why the accident occurred and who was at fault, which can lead to a much simpler process when making your claim.
Happy days!
Will I Be On a Curfew?
Most likely not, although in the past it was common for black box insurers to impose a night-time driving curfew, as driving at night (usually classed as between the hours of 11pm and 6am) is seen as a greater risk.
Some black box policies still work this way, but hard curfews are unlikely to feature in most. That's due to concerns that young drivers were acting dangerously to finish their journeys before a certain time.
However, combined with other factors (speed, braking, cornering), some policies will still take into account any night-time driving that you do. And even if there's not a strict curfew in place, driving at night can bring your score down a great deal.
Does Black Box Car Insurance Work With Any Car?
Pretty much.
Generally speaking, a black box can easily be fitted into almost any car that's less than 20 years old, which is the vast majority on Britain's roads.
Can I Get Cover If I Have a Conviction?
Unfortunately, it can be difficult to get a quote with most insurance companies if you have a conviction, and those that do typically ask for a higher premium, making it unaffordable in some cases. But it's still possible.
Pros and Cons of Black Box Insurance
Pros
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Safe driving can lower your premium
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Helps prove innocence in car collision
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Improves driving skills
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Encourages safe driving
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Suitable for younger, older and less frequent drivers
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Help tracking stolen car
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GPS can alert insurer if you're involved in an accident
Cons
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Unsafe driving can raise your premium
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Less able to drive at night
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Can incur extra charges
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Not tailored towards frequent drivers
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Can restrict your driving habits
Am I Insured to Drive My Car Before the Box is Fitted?
Yes, as you're normally insured to drive the car from the moment the policy starts.
Whilst it's always best to check beforehand, most black box insurance providers won’t make you wait until the black box is fitted before covering you to drive.
However, from the moment the black box arrives by post, you will probably have a deadline by which to install it. Get too close to the deadline and you might receive correspondence from the insurance provider as a warning. Continue to ignore the warning and go past the deadline, and there's a chance that your policy could be cancelled.
Moral of the story: get it fitted as soon as reasonably possible.
Summary
Well amigos, consider that your very own crash course in black box car insurance.
It really can help you get cheap car insurance, especially if you're a young driver. So as long as you stay safe on the road and play your cards right, you'll be on track to save a pretty penny.
FAQs
What does a black box do for insurance?
The purpose of a black box is to lower the cost of your car insurance premium by tracking your driving habits.
Can I earn a no claims discount with black box insurance?
Yes. Same as with any other car insurance policy, you can earn a year’s no claims discount (NCD) by completing the full 12 months of your policy without making a claim. The insurance provider will then apply your no claims discount.
How does a black box know who's driving?
It doesn't. So if you've got another named driver on your policy, their driving could well affect your score.
What if i change my car?
If you switch cars during the term of your telematics insurance policy, your insurer will deactivate the box in your current car and will arrange to install another box in your new car. Some insurers will do this for free, but other insurers can charge up to £150.
What happens to black box when policy ends?
When your black box insurance policy ends, the insurance provider will typically deactivate the black box so that it no longer records your driving. You can then either return it by post or dispose of it at the nearest recycling centre. For more advanced black boxes, you might need to pay for the labour cost.