How Does Black Box Car Insurance Work?
Drivers under 25 will often find that they are paying higher premiums than other drivers. However, this isn’t to say that expensive premiums are the only option, as the use of black box car insurance has allowed insurance companies to offer premiums based on driving habits.
What is Black Box Car insurance
Black box car insurance employs the use of telematics, also known as a ‘black box.’ Although many assume that telematics devices are one and the same, there are three options available when it comes to recording driving habits.
Black Box: A black box is a device that is fitted to the vehicle and employs the use of GPS technology to track driving habits.
Plug-and-Drive: The plug-and-drive device operates in much the same way as a black box but will offer a fixture that fits into a charging port or cigarette lighter.
Smartphone App: Although note offered by all insurance companies, the use of an app can be a simple way of keeping track of driving habits without having to fit a third-party device.
The information obtained will then be used to offer premiums that are more aligned with driving habits as opposed to the age of a driver.
What Information Will Be Used for Black Box Car Insurance?
- The Times You Drive
- Driving Locations
- How Fast You Drive
- How Much Time You Spend Driving
- Your Overall Driving
In most instance, there will be a platform available that allows drivers to view their current statistics and where improvements need to be made.
Will the Information Used by Insurance Companies Be Kept Private?
The information garnered by devices is only used for the calculation of premiums and will not be sent to any third-party unless the data is requested as part of a criminal investigation.
The Levels of Black Box Car Insurance Available
Some may be unsure as to whether there are any differences with black box car insurance when compared to conventional insurance offerings. As the calculation of premiums is only based on driving habits, the same levels of cover are available, including third-party and fully comprehensive.
Of course, those looking to make use of black box car insurance can expect the premiums to fluctuate as per the information made available.
Are There Any Fees Associated with Black Box Car Insurance?
Although every insurance company will have their own way of recording data, in some instances those looking to benefit from black box car insurance may have to pay some fees in relation to the service, which could include but isn’t limited to the following.
- Installation Fees
- Removal Fees
- Vehicle Transfer Fee (If Device is Moved to Another Vehicle)
- Black Box Repair (Should Any Damage Be Incurred by the Driver)
The use of black box car insurance can be a good way of lowering premiums, especially for young drivers and those that may have received motor convictions in the past. Black box car insurance can also be beneficial for those that feel that the premium they pay is too much when they take a lot of care whilst driving.
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