Telematics boxes have become increasingly popular in recent years, with more and more motorists looking to keep their insurance costs down by opting for the devices.
Having a black box fitted is a great way to reduce the cost of your insurance premium, as it lets insurers keep tabs on their customers’ driving by monitoring how many miles they’re covering, how the vehicle is being driven and where it’s being kept. In turn, this allows insurers to offer lower premiums, making them a great way to save money for motorists.
But while choosing a black box can most certainly reduce your insurance costs, there are still a few things you should bear in mind before opting to have one fitted. Here are the things you should be wary of when deciding whether a telematics box is right for you.
Location of your vehicle
The black box will send a GPS signal to your insurer to tell them where your car is being kept. The insurer may contact you if the vehicle is spending long periods of time at a location different to the address named on the policy.
In the event the vehicle is being kept away from the primary address, they may look to update your policy and include the secondary address, which could increase the costs of your premium depending on the postcode. While this may not be the end of the world – in some cases you may pay nothing at all – it’s worth bearing in mind as you could end up forking out more than the price you initially received.
Mileage is tracked
Some black box providers base their prices on the number of miles covered. For those types of policies, if the driver exceeds the mileage stated on the policy then they can expect the price of the cover to increase sharply.
A good way to avoid this nightmare scenario is working out what mileage you’ll be covering on the road and being honest from the outset. By calculating how many miles you’ll cover, when it’s time to compare your car insurance you’ll receive accurate quotes and you won’t need to worry about any unexpected increases further down the road.
A telematics box will send all kinds of information about your driving to your insurer. This will include your average speed, how you manoeuvre around corners and how often you drive above the speed limit. If your insurer feels your driving is reckless, then your policy could be at risk of cancellation.
For most of us, having a telematics device constantly monitoring our driving is a great reason to drive sensibly and within the speed limit. If you’re confident your driving is at a safe standard and you rarely, if ever, exceed the speed restrictions, then you’re the ideal candidate for a black box and precisely the type of the driver the devices were invented for.
On the other hand, if you’re someone who drives erratically and struggles to maintain a legal speed then a black box is probably a big no-no!
Whether or not a black box is the right choice for you, be sure to compare car insurance policies for the best deals and most competitive prices on the market.