What is black box insurance?

Black box insurance is a type of car insurance that’s priced on your driving behaviour. Also called telematics insurance, the theory behind it is that it rewards safe drivers with discounts and helps to reduce accidents on the road.

How does black box insurance work?

Black box insurance works by fitting a small device into your car in a discreet location. It analyses your speed, acceleration, braking, steering, mileage, cornering and mobile phone use and also detects crashes and accidents.

When it comes to renewing your car insurance policy, black box technology gives you an overall driving score. Safe drivers are rewarded with discounts and dangerous drivers are penalised with higher premiums.

Black box car insurance – pros and cons

If you’re a sensible driver, black box insurance might seem like a no-brainer. But as with anything, there are pitfalls to be aware of.

Firstly, let’s look at the pros. Black box insurance can:

  • Save you money on your car insurance — providing you drive sensibly
  • Improve your driving skills — rewards for safe driving encourage good driving habits
  • Help you locate your stolen car — the black box’s GPS tracking system can be used in the event of car theft
  • Prove your innocence in a collision — if you’re involved in an accident, black boxes can help prove that you weren’t at fault
  • Alert your insurers of any accidents — black boxes sometimes come with an accident alert system, which can mean quicker recovery
  • Save you money elsewhere — some insurers also reward good drivers with vouchers and gifts

However, there are disadvantages of black box car insurance. It can:

  • Increase your costs if you’re not careful — bad habits and dangerous driving can hike your insurer’s prices up
  • Limit your freedom on the road — some policies penalise late-night drivers as that’s when most car accidents happen
  • Restrict your journeys — if you frequently use your car, you’re more likely to get into an accident. You’ll be penalised for this and for going over your estimated annual mileage
  • Charge you for additional extras — some insurers charge a fee for installing the box and switching it over to new cars

Who is black box car insurance for?

Black box car insurance is predominantly aimed at new and younger drivers who are looking to lower their annual premiums.

Since car insurance is so expensive for those in their late teens and twenties and who have recently passed their test, it serves as an incentive to drive safely and sensibly.

Black box car insurance rules

The rules of black box insurance vary depending on your provider. But the general guidelines are as follows:

  • Stick to the speed limit
  • Don’t accelerate too quickly
  • Avoid late-night driving
  • Keep within your estimated annual mileage
  • Don’t tamper with the box
  • Brake in plenty of time
  • Don’t let uninsured drivers drive your car

How much does black box insurance cost?

If you’re wondering ‘How much is black box insurance?’, the simple answer is that it depends on your policy and how safely you drive.

On average, a driver aged 17-19 can expect to pay £1,773.69 a year for their black box car insurance. This can save drivers in this group an average of £203.50. Meanwhile, drivers aged 20-24 can expect to save an average of £131.44 by opting for a black box.

Remember, there can be extra costs involved — even with cheap black box insurance. Some providers charge for installation, the box itself and changing over the box to a new car. You may also be charged if you cancel or reschedule your installation appointment at short notice.

Other ways to get cheap car insurance for young drivers

If you’re a young driver looking to reduce your annual car premiums, car insurance without black boxes can still be an option.

You’ll save money on your car insurance by choosing affordable second-hand cars, as well as vehicles that are easy and inexpensive to repair. Choosing a car with in-built safety and security features is another way to reduce your car insurance. Steer clear of cars that reach top speeds and accelerations though — they can really hike up your premiums.

Our guide to the Cheapest cars for young drivers to insure features more tips and tricks for bringing your annual premiums down.

Frequently asked questions about black box insurance

Is black box cheaper than normal insurance?

It can be — providing you drive safely and stick to the rules. If you speed, go over your estimated annual mileage, drive late at night and steer sharply, you can incur increased car insurance premiums. So if you do have bad driving habits, the answer to ‘Is insurance cheaper with a black box?’ could be no.

Most of the time, however, black box insurance for young drivers is cheaper than standard insurance as new and inexperienced drivers are considered to be a higher-risk group. Just think: ‘Drive my car safely and I’ll save on my monthly premiums.’

But keep in mind potential additional charges (for example, installation and the cost of the box itself). It’s therefore wise to shop around for the best black box insurance quote and always read the small prints before making any commitments to an insurer’s quote.

How is the black box fitted?

Once you’ve taken out a policy, your provider will organise a third party to install the device. After it’s been fitted to your car, your driving habits and behaviour will be tracked by your insurer, who will adjust your premiums accordingly.

Can a black box be fitted to any car?

Yes, a black box can generally be installed on any car make and model. Car insurance for young drivers with black boxes should therefore be easy to arrange. You can also take out black box van insurance.

Does black box insurance have a curfew?

The specific rules depend on the provider. Often, this will include a curfew. This is because accidents are more likely to happen late at night or early in the morning. By avoiding driving during these times, you’ll reduce the risk of accidents and reduce your premiums.

Are there age limits on black box insurance?

No, black box insurance can benefit drivers of all ages. However, the incentive is primarily aimed at young drivers under the age of 21 as they typically pay the most for their car insurance due to being considered higher risk.

Car insurance is cheaper for older and more experienced drivers so there are fewer benefits of black boxes. But you can still make significant savings if your mileage is low, you don’t drive late at night, you have a history of claims or you’ve recently passed your test.

So if you’re an older driver, cheap car insurance with black boxes may still be a good idea. It all depends on your circumstance and driving behaviour.

How do I remove a black box?

Black boxes can be removed by contacting your insurer with your firm reference number. They’ll arrange for an appointment with a technician, who will remove your black box.

You’ll have to organise alternative car insurance. No black box insurance could mean higher premiums. Particularly if you’re looking for young driver insurance – no black box in place can hike up your monthly costs.

How does the black box encourage safe driving?

Black boxes incentivise safe driving by tracking your driving behaviour. Everything from your speed to your mileage is taken into account and used by insurers to adjust your car insurance premiums accordingly.

The idea is that if you drive safely, you’ll be rewarded with lower insurance premiums (and sometimes vouchers – depending on your policy provider).

Now that you know more about black box insurance, you’ll hopefully feel more informed about whether it’s the best type of car insurance for you. Have a think and shop for your next car here.

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Article published January 26th, 2022