Black box insurance FAQs

Confused about black box insurance? Our FAQs guide can help you decide whether a telematics policy is right for you

What is black box insurance?

Black box is a type of car insurance policy, also known as telematics, pay as you go insurance, or usage based insurance (UBI).

Black box policies allow your insurer to track your car’s usage and driving behaviour to offer you a tailored insurance premium.

What are the types of black box policy?

Most black box policies are so named because they involve a small device, about the size of a deck of cards, installed in your car (fitted black box). Other types of telematics policies can use an app on your smartphone or a device that plugs into your car’s charger port or cigarette lighter.

Black box policies also vary in what they measure – some are purely mileage based while others are based on behaviour.

What does a black box record?

Each policy is different, but most black boxes will record:

• Acceleration
• Speed
• Braking
• Time of day

Other factors include the type of road, cornering, location, mileage, G force, impact, familiarity, consistency, and smoothness of driving.

Is a black box insurance policy right for me?

It’s popular among young drivers, but can be beneficial for many other drivers, particularly those who only do limited mileage or those in other high risk categories, such as drivers with previous claims or driving offences.

Is black box cheaper than a traditional insurance policy?

For many drivers, black box insurance offers a cheaper alternative to a traditional car insurance policy. Insurers take the view that if you’re willing to have your driving monitored then you’re less likely to take risks, so will likely offer you a lower price than traditional insurers if you’re in a high risk group.

In fact, drivers aged 17-21 with zero no claims could save an average of £1,282 by choosing black box insurance over a standard policy (based on quotes generated by uSwitch between November 2016 and January 2017).

Is my price fixed?

While some telematics providers offer fixed premiums, others will regularly review your driving behaviours and could offer you a refund on your premium if you’ve proved you’re driving safely. But bear in mind some insurers can ‘fine’ you or put your premium up if you’ve demonstrated bad driving behaviours – you will be able to monitor your performance and your insurer will advise you of how to improve your score before they charge you.

How is the black box fitted?

For fitted black box policies, your insurer will arrange for your black box to be installed by a professional fitter at a safe location, usually within 14-28 days of the start of your policy (although you will be covered as soon as your policy begins). It should take less than an hour to fit the device in a discreet and secure place, usually in your dashboard. You will need to provide the following documents to the technician before the device is installed:

Driving licence (or DSA pass certificate if you’ve just passed and your licence is still being processed)
V5C registration certificate
Proof of no claims discount (if applicable)

Do I have to pay for installation?

The cost of the box and installation is included in the price of your premium. But if you want to change your car during the policy, you may have to pay for installation of a new box (see ‘what if I change my car?’).

What if someone else drives the car?

If you share your car, you should be aware that all their drivers’ behaviour will be recorded and count towards your driving score (with the exception of app-based policies).

It’s also important to remember that everyone who drives your car must have adequate insurance cover – they must be either named on your policy or have their own comprehensive policy that includes cover to drive other cars.

Is there a curfew?

When black box technology first came into use, most telematics insurance policies were curfew-based, meaning drivers could be fined or have their premiums increased if they used their car after a certain time of night. Some policies still work in this way, but the industry has moved on from these tactics after concerns that young drivers were acting dangerously to finish their journeys before the curfew time.

None of the black box policies available through uSwitch are curfew-based, but night time driving may affect the driving score for some policies.

Can the black box help me in an accident?

Some telematics devices can detect when your car is involved in a crash. An alert will be sent to your insurer if the device detects an impact over a certain measure of force. The insurer can then contact the emergency services and inform them of your location if they believe you are in danger.

Insurers can also use the telematics data to determine the cause of an accident and who is at fault, which could make the claims process easier.

What if my car is stolen?

Most installed boxes can help to locate your car in the event that it is stolen. The police can work with your insurer to determine the location of your car based on the black box data.

What if I change my car?

If you get a new car during the term of your policy, your insurer will deactivate the box in your current car (for fixed boxes) and will arrange to install another box in your new car. Some insurers will do this for free, but others will charge up to £150.

What if I cancel my policy?

If you decide to change insurance providers, your box will be switched off and the original insurer will not receive any more data from your car. You can also request to have the box removed from your car, but note that you may be charged a fee for this.

Read More

Black box mythbuster

Black box insurance can be a great way of encouraging safer driving and saving money along the way — in fact, drivers aged 17-21 with zero no claims could save an average of £1,282 by choosing black box insurance over a standard policy (based on quotes generated by uSwitch between November 2016 and January 2017).

But according to recent uSwitch research, a fifth of people would never consider taking out a black box policy — mostly because of misconceptions about how the technology works. We look at common myths around black box insurance and reveal the truth.

A black box will spy on me

Of the people in our survey who said they would never consider black box insurance, 46% were concerned the technology is “too much like Big Brother”. In fact, the main factors recorded are those that could affect the cost of your insurance, such as speed, braking, mileage and acceleration.

Some black box technology goes further by detecting impacts, so your insurer can contact the emergency services if they suspect you’ve been in a serious accident. Other fitted boxes can use location tracking if your car is stolen, potentially helping to recover it more easily.

There will be a curfew

To help keep premiums low, many early black box policies imposed a curfew to prevent late-night driving as this is the time accidents are most likely to happen. However, most black box insurers have moved away from this model and allow drivers to use their car at any time without charging a penalty fee. But do bear in mind that your insurer may lower your driving score if you consistently drive late at night.

I will be reported to the police for speeding

While many black box devices and apps do record your driving speed, your insurer won’t inform the police every time you break the limit. Your data won’t be shared with the police unless it is requested with a court order as part of a serious crime investigation.

Black box policies are just for young people

While black boxes can provide significant savings for young drivers as their premiums are typically high, these policies are not limited to young people. Other drivers can save money with black box policies, including drivers with a history of claims or convictions, those with limited mileage, and those with zero no claims bonus.

Aside from monetary savings, older drivers may enjoy the benefits of black box insurance including accident alerts, theft tracking and the ability to view and improve on driving behaviour.

It will distract me while I drive

The black box shouldn’t distract you while driving, in fact the idea is to make you drive more safely. Fitted boxes are installed out of sight and you won’t get any real-time alerts. Most black box policies will allow you to log in online or via an app to view your driving behaviour over a period of time.

Read More

Car insurance with a black box

Black box insurance is great for careful drivers who are frustrated by the high cost of car insurance.

And if you’re a young driver and get penalised with high premiums, despite being a sensible driver, car insurance with a black box could help. In fact, drivers aged 17-21 could save an average of £1,282 by choosing black box insurance over a standard policy (based on quotes generated by uSwitch between November 2016 and January 2017).

Black box car insurance counts the miles you’ve driven, so you only pay for what you use.

What is black box insurance?

Black box insurance policies are powered by technology that measures everything from acceleration to cornering, so your insurer can get a comprehensive impression of your driving habits and charge you accordingly.

Typically drivers are charged a fixed premium with a certain number of miles allowed per year, however some black box and telematics insurance policies work by refunding drivers for good behaviour and increasing the premium for poor driving score.

Some telematics insurers work more like mobile phone contracts, so you top up in bundles of miles depending on how much you’re driving (which is why it’s sometimes called ‘pay as you go insurance’).

What does a black box do?

The black box is installed in your car and links to a satellite to measure your usage, allowing you to check your own driving online.

The black box tracks and measures the following:

• If you brake sharply
• Whether corners are being taken gently
• Occasions of sudden veering
• If speed is within the limits
• Time at which the car is being driven
• The amount of miles driven

Who is black box car insurance for?

Black box insurance policies are ideal for drivers that want to have control over their car insurance costs, as the premiums are personalised based on how you drive. The figures show that young drivers are more accident prone, and hence more likely to claim on insurance than other age groups.

Consequently, if you are a safe driver under 25 you will probably benefit most from black box insurance policies.

The latest research shows that young drivers between 17 to 21 pay more than £1,240 for their insurance (AA British Insurance Premium Index July 2016) — black box insurance is a sure way to bring that figure down, providing you’re a safe driver.

It’s not just young drivers who can benefit from black box insurance. If you use your vehicle outside peak traffic hours there’s a good chance you could save, with insurers charging less thanks to the emptier roads.

What are the benefits of black box insurance?

The benefits of black box car insurance are simple. As your premiums are almost entirely dependent on the amount you drive, driving less is an easy way to save and build up your no claims record.

This also means the likelihood you will be in an accident will decrease, with the insurance industry estimating that black box insurance decreases accidents by 20%.

Some black box insurance policies could even help to save your life if you do have an accident. Certain telematics devices can send an accident alert to your insurer if a sudden stop or impact is detected. Your insurer will call you to check if everything’s okay, and if they can’t get in touch they can alert the emergency services and inform them of your location.

Black box car insurance can also benefit the environment, as it makes you more likely to choose public transport instead of the car, particularly if it means your premium will increase or you will exceed your mileage limit.

What’s more, if your car is stolen, fitted black boxes can act as a tracker so you can retrieve your vehicle.

What are the types of black box insurance?

There are three different ways insurers can measure driving data in your car:

• a black box device fitted in the car
• an app on the driver’s mobile phone
• a self-installed device that typically plugs into the car’s 12V socket

Some types of policy offer refunds or extra mileage allowances for good driving, whereas others will base your renewal premium on the driving behaviour you’ve demonstrated over the year. However, the benefits offered by insurers can vary.

Read More