The myths of black box car insurance

January 15, 2016 | 4years | Insurance News

Black box car insurance has been around for a while now, but it seems that few people are realising the benefits. Research from Admiral has looked at why uptake has been so slow, and much of it seems to be due to misunderstandings around how the whole thing works.


What is black box insurance?

Let's start by looking at what black box (or telematics) insurance actually is. In a nutshell, the policy requires you to install a device in your vehicle that monitors things like your speed, braking, mileage and cornering ability, and even the number of journeys you make and how many rest stops you take on long trips, to determine how safe and skilled a driver you are.

If you're safe, you could get a reduction in your car insurance premium, so for this reason they're particularly popular among younger drivers – this demographic is generally assumed to be higher risk and they often pay far higher premiums as a result, so if they can prove to the insurer that they're less of a risk, they could make great savings.


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