What Are the Benefits of Black Box Insurance?

The reason you’re asked so many questions when applying for car insurance is so insurance providers can assess how much of a risk you are. The higher the risk, the more the insurance is going to cost.

Being a safe driver means you will pay less on insurance premiums, as providers consider you to be much less of a risk. But when you compare car insurance companies, how can you prove to each insurer that you are, in fact, a safe driver?

Black box technology allows insurance companies to track and analyse driving behaviours. With a black box installed in your car, insurers can know how frequently, at what times, how fast and how carefully their customers drive. If they can see that a driver is careful and safe when out on the road, they will be much happier to reward that driver with cheaper car insurance.

Advantages of having a Black Box

Reward Safe Driving

In the past, insurance was grouped through demographics. A young male driver would typically have higher insurance, for example, as they were believed to be more erratic at driving and more dangerous on the roads; while an older female driver was seen as less likely to drive dangerously.

Having a black box can prove you are a safe driver regardless of these demographics and can help prevent anyone from taking advantage of the system based on their demographic group.

Improve Safety

With road traffic accidents causing an estimated 5 deaths a day in the UK, having black boxes that encourage safe driving makes the roads a safer place for everybody. Now, drivers have a financial incentive to drive safely at all times. When they are being monitored, drivers will think twice before breaking any rules.

Prevent Theft

Black boxes work through GPS technology. If a car is stolen, the same GPS technology can be used to track and locate the car, making it much more likely that police will find your car and be able to return it to you. In some vehicles, it is even possible to remotely disengage the ignition to make the car immobile. By making the car much less likely to be stolen, auto theft insurance premiums are also able to be reduced.

Claims

If an accident does occur, the black box can be used to discover if the driver was driving dangerously or speeding. By being able to more accurately identify what happened in a car crash, insurance claims can be managed properly.

When you compare quotes with Quote Goat you can filter your results to include providers with a black box or to only show providers without a black box, check to see which providers require a black box as you may be able to get a discount if you have one installed.

 

What Are the Benefits of Black Box Insurance?