Drivers

Will installing a black box lower my insurance premium?

How black box (telematics) insurance works, what it records about your driving, and how it may help young and new drivers with the cost of cover.

It is a question that gets a range of answers, depending on who you ask. If you are under 25, you are likely to face higher car insurance prices than older, more experienced drivers. A black box is a small device that records how you drive, including braking, speed and acceleration, and it may help bring the cost down.

With that information in front of them, insurers can reward safe driving with a lower premium, and they can also increase it if your driving isn't up to scratch. It can feel like being watched, but for many drivers there are real benefits to letting the insurer see how they drive.

What is a black box and how does it work?

A black box, also known as a telematics box, is a small device fitted in your car, usually arranged by your insurer. It is normally out of sight, so it doesn't distract you while you drive. Some insurers use a smartphone app or a plug-in device instead.

The box uses GPS and motion sensors to record how and where the car is driven, and sends that data to your insurer. The data covers things like your speed, acceleration and braking, which lets you show the insurer that you are a safe and responsible driver. Black box policies are often used by groups insurers see as higher risk, such as young or inexperienced drivers.

The insurer uses the information to assess how safely you drive and may give you a regular driving score. It can use the score to adjust your premium or, with some policies, reward you with extra miles.

Why some people are wary

Not everyone likes the idea of their driving being recorded and stored. Some worry about privacy and how the data might be used. As with any new way of doing things, it can take time for people to get comfortable with it.

One thing that can draw a negative response is restrictions on when you drive. Most black box policies don't set a curfew, but insurers may treat late-night driving as higher risk, so if it becomes a habit your premium could go up. It is worth reading the terms carefully so you know how your driving will be judged.

Can a black box save me money?

It may. When an insurer works out your premium, it looks at many factors about you and your car, such as where you live, your job and the car itself. Without a black box, it has no direct information about how you actually drive.

A black box gives the insurer a chance to rate you on your driving as well. If you drive carefully and keep improving your habits, you can show the insurer you are less of a risk, which may lead to a lower premium over time. If your driving is poor, though, it could have the opposite effect.

For drivers under 25, a black box policy may be worth considering alongside other options. You can find out more on our young driver insurance page.