Pros and Cons of Black Box Car Insurance



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Cheaper car insurance is the holy grail of car ownership. As having insurance is a legal necessity, obtaining car insurance is less a matter of ‘if’ and more an issue of ‘who from and how much’. No one wants to spend more than they have to.

Unfortunately, cheap insurance for new drivers is very difficult to get. Insurance premiums are calculated based on how much risk you pose, and without any history of driving to analyse, or long-term experience to indicate skill, new young driver insurance can be a very high bill.

Enter Black Box Insurance

By having a device fitted to the car which sends data back to the insurers, this type of insurance helps the new driver prove their prowess on the road. By having accurate information of their driving skill, the insurance company no longer has to rely on general statistics or a little faith, but can back up their underwriting with clear-cut evidence.

Telematics Data

So what does the little black box send to the insurer? A standard telematics device details the following:

  • Speed

  • Distance and mileage

  • Time of journey

  • Braking

  • Manoeuvring

This information can give a clear picture of your skill, even going into understanding whether you drive at more accident-heavy times, or the preparedness of your braking.

The data is also available to you with most insurers, with a custom app for your smartphone which allows you to see where your shortcomings are and improve them.

Is it Worth Black Box Insurance? The Pros and Cons

It sounds great – and for many it is, but like anything else there are pros and cons to having your insurance company track your every move.

PROS

The main pros of black box car insurance are : lower insurance premiums due to more sensible driving techniques monitored by the box. You can also use the telematics statistics of your driving to help you improve, for example, if it shows you break too late then you can start driving with this in mind.

The black box constantly sends GPS signals to the insurers so it’s a massive thief deterrent. If your car is stolen then the black box information will help police recover your car.

The black box is also fitted with an accident alert system which informs the insurer immediately if you are involved in a crash. This could add an extra level of safety for you if anything should happen. Another bonus of the accident alert system is that claims are handled faster and can be more straight forward as the black box provides evidence to the insurance companies about what happened.

CONS

Sharing a car becomes harder; as the box does not discriminate between drivers and one person’s poorer driving can become a liability on the insurance.

It is important that you stick within pre-defined limits. If you feel you are going to go outside of that limit, then you must contact your insurer in advance to avoid potential fees. Additionally, some cover imposes a curfew on driving times to prevent new drivers being on the road during dangerous hours.

Finally and obviously: If you are a dangerous or careless driver, that’s going to show.

For a quick look at black box insurance pros and cons see the table below;

PROS

CONS

  • Cheaper insurance premiums

  • Improves driving

  • Anti-theft tracking

  • Accident Alert

  • Claims handled faster

  • Mileage limits and curfew

  • Personal data sharing

  • Harder to car share

RAC Black Box Car Insurance

There are many insurance providers that offer black box car insurance but, in our opinion, the RAC offer the best policy when it comes to telematics. When purchasing black box car insurance with RAC you retain all the benefits of their award winning car insurance whilst also receiving one year of free breakdown cover.

With RAC car insurance you can get up to 65% of with 9 years of no claims bonus. RAC car insurance Plus can’t be found on price comparison sites but if you buy directly from their website they offer a 10% discount to existing RAC members.

It really is a great insurance product, receiving a five star rating from Defaqto, so if you are thinking of getting black box car insurance then we recommend using the RAC.

You can find the RAC insurance page here

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author image - crispin

By Crispin Bateman

on Friday 10 August 2018