We wrote a blog last week about how to get cheaper insurance as a new driver. If you’ve tried all of those things before though and insurance still seems to be out of your grasp, why not look into telematics or, as it’s more commonly known, black box insurance.
What is Black Box Insurance?
When you sign up for black box insurance, the insurance company will fit a black box to your car (generally free of charge) so they can monitor how many miles you do, how much sudden braking you do and your speed on different roads in different conditions. All of this information is then assessed to see how much of a risk you are when driving.
How does it work
Different insurance companies have different policies when it comes to saving you money with a black box. Some will limit your miles and grant you extra if you’re a safe driver. Others will provide you with a discount for safe driving at the end of the year. Have a look at the different options and see where you could save the most money – while also having a package which suits you.
Benefits of the Black Box
A lot of people can be a bit wary and uneasy about having their driving tracked, however you could save thousands of pounds each year by having a telematics system installed in your car. The tracking data will help you reduce your premiums, which could put a car that you wouldn’t normally have been able to insure within your reach. The other big benefit of having a black box installed is that the car now has a tracking system installed in the event of it being stolen. This could very well put your mind at ease if you don’t have a modern immobiliser or alarm system fitted.
Who is Telematics Suited for
Black box insurance is aimed at younger people and more inexperienced drivers; however, it could also be useful to you if you haven’t passed your test. Most black box schemes work on a limited mileage basis, making it perfect for people who don’t drive a great deal anyway. If you have a second car in your household that only gets used very infrequently, look into a telematics insurance policy and see how much you could save.
Conversely of course, black box policies are no good for people who drive a large number of miles each year. If this is you, take a look at our previous blog post with some ideas of how to reduce your insurance policy costs.