Finding affordable car insurance is never an easy undertaking. However, there are ways and means of reducing these pricey premiums down to something more attractive, and black box (also known as telematics) car insurance is said to be one of the most effective.
Unsurprisingly, black box car insurance is now a popular option, with more and more motorists opting for this type of policy. Here, we’ll go into what black boxes are, how they affect insurance pricing, and who can benefit from them based on their driving habits.
Black box insurance is when a telematics box monitors how you drive; it’s a small box about the size of a smartphone that’s installed in your car. Most of them have a GPS, motion sensor and SIM card that are used to send information to your insurer.
The box is typically installed in your car, which then relays information about your driving to them by satellite. They then calculate your premium based on your driving performance, offering lower prices if you’ve been driving safely.
In terms of metrics that are monitored, the black box tracks your speed, braking, acceleration and cornering. Additionally, it also looks at the time of day you drive, and the number of miles covered, along with the type of roads you drive on.
A black box is a device that uses a variety of sensors to monitor your driving to assess whether your car insurance should be more or less money.
There are a variety of ways to install a black box, sometimes it doesn’t require any installation at all, coming in the form of a smartphone app with no additional hardware needed.
Policies can differ among insurers. Some constantly monitor your driving, sending data after every day or journey, while some only require you to use the box for a short period.
In the case of the latter, you’ll be monitored for, say, three months. After this period, you’ll return the box and your insurer will adjust your premium based on the data collected.
This gives drivers an incentive to drive carefully to reduce their insurance premiums.
There are a few ways that a black box can be installed in your vehicle that range in terms of difficulty to install. Here are the main ways:
A self-installed black box will be sent to you in the post, once you take out your policy. Installation instructions will be included, but they all follow roughly the same routine of locating your OBD port and simply plugging it in. It’s important that you install your box as soon as it arrives, as your policy could be cancelled if you don’t install it within a certain time frame.
In some cases, a professional will be sent out by your insurance provider in order to install the box. This could be due to the car being an older model, or not having a suitable onboard diagnostics port.
The easiest option that an insurer can offer is to simply ask you to install a smartphone app that you turn on for each journey. It uses the sensors within your phone to give the same metrics that a dedicate black box device would.
There are a number of advantages to having a black box, but also some disadvantages that you should consider before you commit to having one installed.
As well as having a black box for the purpose of lowering your insurance premiums, it’s important to consider that it can make you an all-round better driver. So, what are some good habits you should start adopting when behind the wheel, even if you don’t have a black box yet?
Accelerating smoothly and braking slowly will let your insurer know that you are a responsible driver.
A key element of safe driving is staying within the speed limit. Remember the speed limit is a limit and not a target.
A black box will monitor your mileage, and your insurer may increase your renewal price if you are consistently driving over your agreed mileage.
Some policies don’t allow for night-time driving because it is generally considered to be more dangerous, check your policy before you take the risk and increase your premiums accidentally.
We’d never recommend speeding with or without a black box, but it is especially important with a black box. Speeding with a black box will negatively affect your driver score and could lead to higher renewal premiums.
Excessive or frequent speeding can lead to your insurer cancelling your policy early.
There are several fees that you might want to take into consideration before you opt for black box insurance. The following could affect how much your black box insurance policy could cost:
If you buy a new car but still want to carry on using your black box, some providers charge you a fee for the privilege. Additionally, some insurers will also charge you a fee for switching to a new vehicle even before the box is installed.
When you sign up for a black box policy, your provider will set an installation date for the fitting of the device. If, for whatever reason, you miss the date, it’ll result in additional charges.
When your policy ends and you opt for a different provider, you don’t have to remove the box, but it will need to be switched off. While most providers do not charge for this, some of them do, so take note when you sign up.
If you insist on having the box removed, however, then you could well be charged for its removal.
As well as the above fees, black box providers charge many of the same fees as traditional car insurers. This includes an APR if you pay monthly, cancellation charges and duplicate document fees.
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