Money Where Your Mouth Is
Black Box Car Insurance for Young Drivers
So you’ve done it – you’ve passed your driving licence and you are only a few hurdles away from your own car, and that sense of freedom that can only come from true independence. The summer stretches ahead of you, with impromptu holidays, festival weekends and even just the ability to zip to the supermarket as and when it suits you.
Being legally able to drive is exhilarating.
But there’s the matter of insurance.
Unless you are lucky enough to be both under-21 and earning like an experienced 40-something professional, the impact of insurance premiums are substantial. It feels unfair – after all, you’re a good driver – you proved that by passing your test. Why the ridiculous sum of money for insurance that you can’t go on the road without?
Simply put – no one believes you.
And why should they? Insurance companies aren’t dumb – they’re a business and they know more about risk analysis than most of us will ever understand. As a new driver, fresh out of the test centre and with zero solo miles on the clock, you are the greatest risk they are going to take. They have to take you – because someone has to provide you insurance in order to allow you on the road – but they don’t have to make it cheap.
On the first pass, you will probably find it difficult to find car insurance for young drivers under £1000.
The key is to prove you are as good as you know you are. Careful driver? Tick. Understand the rules of the road? Tick. Not going to speed? Tick. Definitely not going to crash? Double tick.
This is where telematics comes in. Telematics means “the long distance transmission of computerised information” – or, simply put, you sending complete driving data to the insurance company. Think of it as having someone from the insurance company sitting in your passenger seat whenever you get in the car, getting to see how good you are, and reporting that back to their bosses.
If you are as good as you think, they’re going to start trusting you – and when they trust you, that argument for cheaper insurance goes a long way.
It’s a money-where-your-mouth-is moment – because just as your premiums will drop if you show yourself to be a mature considerate driver, so too will they increase if you display the behaviour they are worried about.
Of course, that’s not going to happen.
The Black Box
Once you go down the road of telematics-based insurance, you get a device fitted to your car (the ubiquitous ‘black box’) which sends GPS data to the insurers whenever you are out on the road. Some companies don’t even need the box itself and are willing to track you with a phone app.
This is why it’s often called “black box car insurance” – even if you don’t have the actual black box and are using a mobile app.
The insurance company will know where and when you are driving and will use information such as your speed, the way you brake, and your acceleration to build an accurate picture of your driving habits.
Driving sensibly can save you an absolute fortune on insurance, with black box car insurance in the UK saving an average of £200 a year for people 17 to 20.
All you have to do is drive with respect and skill.
Big Brother is Watching You!
There’s a tendency to stand up and fight the idea of ‘big brother’. In this data-driven information-gathering age, it is somewhat fashionable to act in defiance of your data being utilised by ‘the man’.
Thing is – no one is forcing you to share your data. This isn’t a case of fascist-state surveillance; this is merely you wanting to prove your safe driving skills with the insurance company. You are approaching them with a desire to prove your trustworthiness, and you can’t do that if you are not going to let them watch you drive!
It’s your choice – do you want the discount on your insurance?
There Must Be Another Way!
And there is. Ultimately, the insurance company wants to trust you – they really would far rather you were a reliable customer than a huge risk. Other schemes do exist to help prove your trustworthiness:
This government-endorsed scheme is an extra six hours of advanced driving experience that is assessed and certified. While not all insurers will take a pass plus certificate into account, many will and will lower your premium accordingly. Our advisors can help you choose the right insurers if you get a Pass Plus certificate.
This is the standard way to lower your insurance premium. For every year that you drive without needing to claim on your insurance, the no-claims discount goes up, and it soon makes a major impact on your policy price. Of course, it takes time to build up a solid No-Claims Discount, so this is no small undertaking.
Is That It?
Pretty much so, yes. That’s why going with telematics might be your only realistic option to drag down the price. Let’s take a quick look at black box car insurance pros and cons:
Black Box Car Insurance Pros and Cons
Calling our advisors will enable you to ask any questions you may still have regarding getting cheap car insurance with a black box. They are experts who will help you find a policy that’s right for you and save you money in any way they can.
So give us a call today. Put your money where your mouth is, and get a telematics device fitted to your car – it’ll give you and your family peace of mind and give you that vital way to prove to a prospective insurance company that having you as a customer is all upside.