Car insurance Updated:
So-called "black box" insurance policies are growing in popularity, particularly among younger drivers, in the hope that it could save them money on their car insurance premiums. Have you taken the plunge?
Figures from Consumer Intelligence show that around 323,000 drivers currently have these telematics policies in place, an increase of 9% in almost 18 months. Younger drivers are key users of this kind of technology, with 22% of young male drivers having a 'black box' installed, as do 14% of women in the 18-24 age group.
Telematics policies reward safer driving, typically in the form of a reduction in premiums at renewal, so it's no wonder that they're growing in popularity. The fact that they're so popular among younger drivers shouldn't be too much of a surprise, either, particularly given that younger or inexperienced drivers are likely to be charged the highest premiums – if they can get a chance to prove their worth as a safe driver and get cheaper policies in the process, it's win-win!
If you haven't thought about one of these policies, they could be worth consideration. They track things like your speed, braking, cornering, mileage and the number of journeys you take, and can even tell the time of day you drive, when you're on the motorway and how many rest stops you take during long journeys.
It seems that many people could be tempted to opt for such a policy, particularly if they cut premiums (61%, with 78% wanting a premium reduction of at least £80), gave refunds for safe driving (59%) or for lower mileage (52%), and younger drivers could be tempted with smartphone apps to keep track of their data. Older drivers would also be tempted if the black box was free – 53% of 35 to 44-year-olds would opt for a telematics policy in this case, as would 53% of over-65s – and they'd also like to be alerted on servicing and breakdown care.
"There is increasing acceptance of telematics and genuine benefits for drivers and insurers to use it in terms of safer driving and better pricing," said Ian Hughes, chief executive of Consumer Intelligence, "[but] there is still a long way to go for the motor insurance market before there is mainstream adoption of such policies. Insurers need to look at developing policies that address the needs of different age groups and reflect what they want and would value from telematics."
Have you got such a policy, or are you considering it? If so, it's time to find the quote to suit! Check out our quote tool to see if you could save money on your premiums.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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