Is Black Box Insurance Worth It?

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

As one of the most popular options for both new and young drivers, a black box can help reduce the cost of an insurance premium by a considerable amount. In return, the telematics company in question will monitor how a person drives and score them based on certain criterion like their route and speed. Here at Quote Goat, we know how difficult it can be to make a decision on the nitty gritty details which is why we’ve taken care of all the hard work. Read on as we go over everything there is to know about black box insurance and whether or not it is worth it…

Guide: Drive a van? Check out our van insurance with a black box guide.

There are certainly a handful of immediate benefits that can be obtained from an investment in a black box as drivers under the age of 25 could see their premium reduce by hundreds of pounds. After all, new and young drivers are statistically more likely to make a claim or be involved in an accident which is why they tend to pay more for an insurance policy; a black box allows drivers to be treated as an individual and have their driving assessed without being compared to statistics. In addition to this, many black boxes use GPS technology which can deter thieves and help recover a vehicle after it has been stolen.

On the other hand, many drivers feel like they are trading their freedom in return for a lower premium. After all, a black box evaluates how a person drives every single time they sit behind the wheel and tracks criterion such as:

  • The length of journey
  • The risk of the roads
  • The time of day
  • Smoothness of driving
  • Comparative speed

All of this data is collated together in order to provide drivers with a score. Unfortunately, a lot of this information is out of the control of the policy holder, particularly the risk of the roads and the time of their journey, which can make it hard to obtain a consistently favourable score. This is important to remember because black box drivers with bad habits may end up paying a higher premium the following year.

In addition to this, some black box policies come with driving curfews which prevents drivers from being on the road during the night. After all, this is statistically when most accidents are likely to take place. This can make driving impractical for shift workers who require the use of their vehicle early in the morning and late at night. Finally, the data that is obtained from a black box is sent to the insurance company which may put off some drivers due to privacy concerns. After all, there is always a rare possibility that hackers may get their hands on the personal information that is being stored.

The decision to invest in a black box often falls down to personal preference. After all, many drivers prefer to obtain insurance without a black box in return for their freedom as the scores are often determined by conditional factors that are out of their control. To find out more information, check out Quote Goats’ trusted comparison site today!

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