Black Box Insurance: Everything You Need To Know - 2024

What is Black Box Insurance?

Black box insurance (also known as telematics insurance) is a form of car insurance that uses smart technology to keep an eye on how you’re driving, and your driving habits in general. Basically, it's a type of cover where a small device is installed in your car to monitor how you drive - think of it like a Fitbit for your car!

Instead of basing your premium purely on your age, which can be expensive for younger drivers, Black Box insurance rewards safe driving with lower insurance premiums. In essence: The safer you drive, the less you are likely to pay!

How much does Black Box Car Insurance cost?

The table below shows the Costs Affecting Black Box Auto Insurance

Please be aware that the numbers are only indicative and that real expenses differ greatly.

The "Factors" column in the table lists the significant variables that affect the price of black box auto insurance. "Impact" refers to how each aspect influences the premiums by making them higher or cheaper. The "Annual Cost Range" and "Monthly Cost Range" columns show projected cost ranges based on the variables.

We can't give you an exact price tag, but the below table gives you a general idea of what you might be looking at depending on your age. Remember, these are just estimates - your best bet is to get quotes from different insurers to find the best deal for you!

Based on fully comprehensive car insurance policies with one driver holding a full UK drivers licence. MoneySuperMarket data collected between January and March 2022, accurate as of April 2022.

As you can see from the table above, black box insurance can save you money no matter your age. But it is more common to get black box insurance as a young driver and it saves you money as a result. 

Why is Car Insurance for Young Drivers So Expensive?

It’s no secret that insurance premiums are often significantly higher for younger drivers than other road users. There are even cases of young drivers that have just passed their test being quoted annual premiums up to £7,000! In fact, high insurance costs are pushing some young drivers off the road altogether.

Insurance companies are in the business of minimising risk, and unfortunately young drivers are in a much higher risk category than other road users. This is simply due to a lack of proven experience.

Expensive car parts + young drivers more likely to be involved in accidents = insurance companies worried they'll lose money, even with the high premium prices. Insurance companies love statistics, and unfortunately for young drivers, insurance premiums are all based on statistics and risk assessments.

In 2010, 1 in 3 people killed or seriously injured while occupying a car were under the age of 25. 26% of car user deaths and 12% of all road deaths are young people between 17 and 24 travelling in cars.

Black Box insurance, however, provides you with an opportunity to prove that you’re the exception to the rule! Black box insurance offers a way to fight back against soaring insurance premiums based on your own driving skills. Insurance companies are more willing to insure young drivers with a black box as they are hopefully able to recognise dangerous or reckless driving before any accident and subsequent claim occurs.

This occurs through intervention teams who will contact young drivers to advise them how to improve their driving - or if their driving is particularly bad, cancel their policy. This allows insurance companies more control and gives them an opportunity to prevent claims from occurring.

How to Save Money with Black Box Car Insurance

Since black box insurance tracks driving habits, it rewards safe drivers with lower premiums.

Since young drivers are new to the road and haven't built up a No Claims Bonus yet, insurance companies have to see them as a bit of a risk; since they know very little about the driver’s ability or history (other than that they can drive at a good enough standard to pass their practical test).

But with a black box, they can track your driving and see if you're a pro or a hazard behind the wheel. The good news? If you're a safe driver, the black box reports your good habits and you’ll likely be awarded with the best premiums available to you upon renewal

Similarly, if you’re driving recklessly or dangerously, your insurance company will be able to see this and send out a warning. The black box keeps an eye on you, and if you do get a little too casual about speeding/driving dangerously, some insurers might even cancel your policy - minimising their own risk.

So, black box insurance basically rewards responsible drivers with insurance savings and can help to get your overall driving habits in check, which will lead to even more savings in the future after you’ve accumulated some No Claims Bonus.

Black Box Insurance for responsible drivers is like a Sat Nav for your wallet. Destination: Savings.

What Does Black Box Car Insurance Track?

George Orwell was right! Big Brother is watching you! Well, not quite. Wondering what that Black Box in your car is keeping tabs on? Here are the main few things:

• Speed: Speeding is always a bad idea, and when you have a black box tracking your driving it is an even worse idea. Black box insurance rewards safe driving, and speeding can significantly damage your score. Even minor slips above the limit can affect your discount potential. However, the consequences become much harsher with excessive speeding. Going significantly above the limit (check your insurer's specific thresholds) can lead to premium hikes or even policy cancellation. Remember, speeding not only hurts your insurance but also puts yourself and others on the road at risk.
• Acceleration: Flooring the pedal to the metal isn't good for your fuel efficiency or for your black box score. Smooth and steady acceleration is the name of the game here.
• Braking: Slamming on the brakes at the last possible second every time? Not a good look for your black box. Aim for smooth and controlled braking to keep your score high.
• Time of Day: Night owls beware! Some insurers consider late-night driving higher risk. If you work late shifts, look for a black box program that doesn't penalise you for these hours; and some Black Box policies come with a required curfew - so bear that in mind!

By being aware of what a Black Box monitors and driving safely and accordingly, your insurance policy can avoid a trip to Room 101!

What score is good for my black box insurance?

Black box scoring systems vary between insurance companies, so there's no one-size-fits-all "good" score. Some insurers might use percentages, while others use a star rating system (five stars is the ultimate goal!). Whatever the scoring system - the key thing to remember is that a higher score generally means better driving habits and potentially lower premiums.

Most Black Box insurers will contact you if your score falls below a certain threshold. They'll offer tips and advice on how to improve your driving and boost your score. This could include tips on smoother acceleration, better braking techniques, or avoiding late night driving. It can be a pain to be hassled by your insurance company, so the better you drive the less you’ll have to hear from them.

Remember, you have to drive safely, or you risk having your policy cancelled.

Can my insurance be cancelled for a bad score?

Yes. Your Black Box Insurance can be cancelled for a bad score.

While a single low score probably won't get you kicked off, consistently bad scores can raise a red flag. This shows the insurer that you might be a risky driver, which is risky for them too. If your score stays low, they may:

• Contact you to advise you where you’re going wrong.
• Increase your premiums to reflect the higher risk.
• Cancel your policy altogether.

If you break the speed limit by a significant amount (often 50%, but check your own individual policy documents), insurers are likely to immediately cancel your Black Box policy. Even if you’re a generally good driver, speeding through a 30mph school zone at 45mph is never going to be acceptable.

What if someone else was driving my car with a Black Box?

Let's say someone else borrows your car that you have a Black Box policy on and has a particularly bad journey. Here's the breakdown:

• Authorised drivers: Most insurers will be understanding if the person driving your car had a legal right; such as being listed as a named driver for the vehicle or using the vehicle for a temporary insurance policy. Make sure to flag this with your insurer and be prepared to show proof. But remember, all trips can affect your score - so, encourage whoever borrows your car to drive smoothly and safely!
• Unauthorised drivers: Letting someone drive your car who isn't a named driver is illegal. If they get caught, it will void your insurance entirely - so be cautious about who gets behind the wheel! By allowing an unauthorised driver to use your vehicle, you're also breaking the law and risking your own coverage. Don’t be daft!

Can I get a cheap insurance renewal for driving well with a black box?

Absolutely! The whole point of black box insurance is to reward safe drivers. By keeping your score high with good habits like smooth acceleration and responsible speeds, you're basically showing the insurer you're a low-risk driver.

As it happens, insurance companies rather like low-risk drivers; and as a lower-risk driver, you are much more likely to get rewarded with lower premiums come renewal time!

Can I remove my black box?

Removing your Black Box can completely invalidate your insurance. If you try to tamper with your black box or try to block its signal, your insurance company will know.

If you have an accident or try to make a claim, you won’t be covered, and this could be a very costly mistake to make. You may also struggle to find insurance coverage in the future, and if you do - it almost certainly will not be at a good price!

Our advice? Just leave it installed and focus on being a safe and responsible driver without taking any shortcuts. The potential discounts you earn through good habits are worth it!

Is Black Box Car Insurance only available to young drivers?

No – Black Box insurance is available to drivers of any age, however it is more specifically tailored to younger drivers, particularly between the ages of 17-25. This is due to the high premium charges that this age group is likely to face after passing their practical driving test. Whilst Black Box Insurance could see a reduction in premiums for older drivers, it may not be as worthwhile, and insurers may be less likely to present it as an option when offering coverage to these drivers.

Other than young drivers, other groups likely to be offered coverage under a Black Box insurance policy include drivers with a poor driving record, convictions etc. This is due to the higher perceived risk for insurers to provide these drivers with coverage. This coverage might also be limited, such as only being offered third-party coverage for example.

Can you get temporary black box insurance?

No, you cannot currently get temporary Black Box insurance.

Black box insurance works by installing a device in your car that tracks your driving habits. This wouldn't be practical for temporary policies because it would require a technician to come out and install the device, then remove it again shortly after.

Additionally, black box insurance offers discounts based on the data it collects over time. A temporary policy wouldn't allow for enough data collection to accurately assess your driving and offer a fair discount. Black box insurance typically functions as a year-long policy. This extended period allows for a full picture of your driving behaviour and the chance to earn discounts based on consistent safe driving.

If you only need short-term car insurance, some providers offer temporary coverage by the hour, day, week, or month. These policies don't require any device installation. Check out InsureDaily’s Temporary Insurance policies here.