If you have just passed your driving test or want to save money on car insurance each month, a black box may be the way forward. A car black box (also known as telematics) bases the price of your insurance on how well you drive, instead of raising your car insurance because you are a new driver like many automotive insurers do.
So how does black box insurance work?
When you have signed up for black box insurance, your car insurer will install a physical GPS box in your car. The box will then transmit information back to them about how well you are driving. It will monitor your steering, braking, cornering, the time you drive, your mileage and your speed.
It’s important to know that if you go above the speed limit or frequently go out at night, that some insurers have a cut off time as to when you can drive and can increase the cost of the insurance if you speed. Also, some insurers won’t install a physical black box and will only monitor your driving performance through an app. If you drive safely and have a good performance record, you will get rewarded. This is either through a portion of your premium at renewal being returned to you, a bonus based on low mileage, lowering the price of your insurance etc.
Black box car insurance is a great idea for new drivers who don’t want to fork out on the expensive alternative. To find the right insurance for you, it’s important that you shop around and see if there are any limitations on each of the policies.