The black box that reduces car insurance

car insurance
car insurance

It is notoriously difficult for young drivers to find an affordable insurance policy that gives adequate cover to both them and their cars. So what if there was a way for these drivers to prove to insurers like, for example, that they are cautious and are fully able to drive sensibly?

car insurance

car insurance

According to a Guardian article, there might just be a way to do this. Some insurers are now offering a ‘telematic’ or ‘black box’ policy that could save young drivers between 25 and 30% off their premium. Considering that the average cost of car insurance for young males aged 17-22 is now around £2,000, this could save them around £600 per year!

So what is the ‘black box’ policy and how does it work?

Basically, a black box is fitted to the car and records information. The box is about the size of a mobile phone and does not cause any damage to the vehicle and is purported to use even less energy than a car radio, so there is little chance of it draining the car’s battery.

Here is what the black box records using GPS:

  • The distance travelled
  • The location of the car
  • What type of road the car is travelling on  e.g. motorway, slip road etc
  • The speeds at which the car travels
  • How the driver is using the brake
  • The direction and speed of the vehicle immediately preceding a crash
  • The force at which a collision occurs
  • The times of day that the car was used

How do insurance companies use this information and how will it help young drivers?

Keeping in mind that young male drivers are 40% more likely to have an accident between the hours of 11pm and 6am, the insurance companies charge the driver heavily for venturing out between these times.

Conversely, those who travel fewer miles and who travel outside of the rush hour will receive lower premiums as a reward.

Cautious drivers will be able to prove themselves to be so more reliably, and should accidents occur the insurance will not only be able to investigate the incident more accurately, but will also be able to provide assistance.

The black box could also track down the car in the event of a theft.