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Driving with a black box for insurance purposes

Black box car insurance is an innovative type of premium that charges you depending on how well you drive. You get rated by your speed and driving style which takes into account braking, steering and mileage.

Depending on how well you drive, you could get a premium discount or bonus miles. Over 300,000 cars are already fitted with these little devices, but exactly what do they do and should you get one?

How does black box insurance work?

To reap the rewards you have to have a small device installed under the bonnet of your car. It contains a GPS and sends back all the gory details (we jestÖhopefully!) of your driving for the insurance company to analyse.

They then take this information and examine your driving performance; they use this to work out how much insurance you should pay. The riskier you are deemed, the more you have to pay.

So what exactly are they monitoring? The time of day that you drive (daytime is considered less risky), your speeds on different types of roads, your total mileage as well as things like acceleration and braking.

Who would benefit for black box insurance?

New drivers often face much higher premiums, this is because they are deemed riskier drivers. Unfortunately, the statistics back it up: one in five young drivers have an accident within the first twelve months of getting their licence, one in three road death victims are under 25 and an 18-uear-old driver is more than three times as likely to crash than a 48-year-old.

But, there is good news! If youíre a decent driver, The British Insurers Brokers' Association (Biba) say you could save between 25% - 30% with black box insurance.

What are the negatives of black box insurance?

If you overestimate your ability and you are considered a poor driver by the insurer, your premium rate could go up and you could end up paying more.

The whole thing also has a bit of a big brother vibe about it and various civil liberties campaign groups have raised the issue of privacy invasion. There is also the potential it could develop in the future. A recent article in the telegraph says the technology is not far away from being able to cut off phone calls, silence the radio and even monitor the weather. Spooky!

Should I get black box insurance?

If you are a young, new or an†inexperienced driver it could be worth getting black box insurance, particularly if you are confident you are a good driver. There is also a potential saving to be had for drivers who donít drive a lot of miles or drive predominately during the day. And, of course, if you are a very good driver whose a stickler for the rules (letís hope you are!) you would also do well to look into the possibility of black box insurance.

As always, the best thing to do is carry out some comparisons of your own and work out which insurance premium is the best for your financial situation.†


published: 30/10/2015 09:00:06

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