Black Box Insurance
Black box insurance – rewarding safer drivers
- Policy premiums based on how you actually drive
- Rewards safe driving
- Ideal for new and younger drivers
*Please note that Black Box Insurance is not a standalone insurance product. It is an optional feature offered by certain car insurance providers, where your driving behaviour is monitored through a telematics device (the “black box”). This information is used to help determine your premium, potentially offering lower rates for safer driving. However, Black Box Insurance still requires a comprehensive or third-party policy, and the telematics feature does not replace the need for standard car insurance coverage
If you want to lower your car insurance premiums and you’re a safe and responsible driver, a policy that includes a black box could reward you with a cheaper policy. This device monitors your driving habits so your insurance can be based on how you actually drive rather than the provider making an assumption based on your age or other factors.
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What is black box insurance?
Black box car insurance – also called telematics insurance – is a type of car insurance policy that uses technology to help drivers cut the cost of their car insurance and promote safe driving.
Black box insurance uses a small telematics device installed in your car or accessed through an app on your phone. It measures how well you drive and tracks your driving patterns. By sticking to safe driving habits, such as driving during off-peak hours or on quieter roads, the cost of your policy could be reduced.
Black box insurance policies are often popular with new or younger drivers who typically face higher premiums.
As well as cost savings, in some cases the data collected by the black box can help resolve claims if an accident occurs.
How does black box insurance work?
The telematics device, known as a black box, is either installed in your car by your insurance provider (which usually takes around an hour) or in some cases can be self-installed, depending on the type of device they use.
The black box will be installed in an out-of-sight location, such as behind the dashboard, to prevent tampering. The device then records and sends data using GPS such as:
- Your location
- Time of your journey
- Duration and distance of your journeys
- Average and maximum speed per journey
- How quickly you accelerate
- How harshly you brake
- How controlled your cornering is
- Road type
- G-force (for impact detection)
Car insurance providers will then look at the data collected and award you with a driving score which reflects how safe your driving is – the higher the score, the better and safer your driving is seen to be, potentially leading to lower premiums. This is one of the biggest advantages of having a black box car insurance policy, as it gives your insurer a more accurate view of the type of driver you are, which can help them provide a more personalised car insurance premium.
You can also look at the scores you’ve been given by your provider through a mobile app or an online dashboard, giving you real-time feedback on your driving habits.
Some policies don’t even require a device to be fitted to your car, they can instead work through an app installed on your smartphone.
Why should I choose black box insurance?
Potential policy discounts
If you believe yourself to be a safe and responsible driver, a black box insurance policy will help you prove that to your provider. This could then lead to lower insurance premiums.
However, if your driving data suggests you’ve been driving dangerously (speeding, uncontrolled cornering, harsh braking) then you could see your premiums increase – so a black box insurance policy isn’t guaranteed to save you money.
Accident alerts to your provider
Your telematics device can provide accident alerts to your provider – although not all providers offer this as part of their black box insurance policy.
The accident alert is based on the GPS data transmitted by the black box which can suggest an impact has taken place. It is also handy if additional information is required for personal accident cover, provided it's part of your policy.
If your provider believes you may have been injured by an impact while driving, they may call the emergency service on your behalf. This can be especially valuable in remote locations.
Accident alerts to you if the car is stationary
The black box can tell if your car isn’t moving and whether the engine is running.
If your car was stationary when an impact took place, your provider may call you to notify you of the accident. This could help you quickly respond to any damage caused to your vehicle.
Is black box insurance good for young drivers?
Car insurance policies for young drivers often cost more because providers view them as having a higher level of risk on the road. As a result, drivers under 25 typically face much higher insurance premiums compared with other drivers.
Black box insurance for young drivers gives them a way to prove that they’re safe drivers, potentially leading to lower premiums. By showing they have safe driving habits, they could qualify for discounts on their policy while still being able to add any necessary optional extras, such as breakdown cover.
However, if you upgrade to a different car before your policy renews, you'll need to let your insurer know so that you remain covered. You’ll also need to bear in mind that your premiums may go up if insurers view your new car as high risk.
Black Box Car Insurance FAQs:
- Is black box a good idea?
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As a black box car insurance policy is designed to reward good driving, you may consider this type of policy if you feel you’re a safe and responsible driver. It could also be a way for newer or younger drivers to get cheaper premiums, although this is not always the case.
- How much does a black box take off your insurance?
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This depends on your personal circumstances and insurance history and could change depending on your driving habits while you have telematics insurance. While a black box insurance policy can reward responsible driving, it can also raise your premiums if you drive irresponsibly.
- Can I drive at night with a black box?
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With most policies, you can still drive at night with a black box installed, though some insurers have optional curfews.
- Does a black box know if you crash?
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Yes, part of the black box’s job is to record incidents as well as general driving, saving the data of impacts and crashes to help your insurer understand what happened. This can also alert your insurer to emergencies, helping them to respond quickly.
- How does a black box work with multiple drivers
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When a black box is installed in a car, it monitors the car and not the individual driver. So, if multiple people drive the same car, all the data will be sent to the insurer. Another option is to opt for telematics car insurance that uses a smartphone app as this will be linked to your smartphone so will only collect data on your driving.
- How strict are black boxes with speed?
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Black boxes are strict when it comes to speeding. Excessive and persistent speeding can lead to penalties and increased premiums. It could even lead to your policy being cancelled.
- What does a black box look like?
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A black box is a small box, that’s about the size of a pack of cards. A trained engineer will usually fit it behind the dashboard of your car.
- ow long do you have a black box for?
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You’ll typically have a black box for the length of your insurance policy, which will be 12 months. After this, you can renew your policy and keep the black box or cancel it and get it removed.
ASDA Money is a trading name of Asda Financial Services Ltd and Asda Stores Ltd which for general insurance are Introducer Appointed Representatives of Vast Visibility Limited, 8 Princes Parade, Liverpool, L3 1DL, authorised and regulated by the Financial Conduct Authority. Firm reference number 566973. You can check these details on the FCA Register.
The ASDA car insurance comparison service is arranged by and administered by Vast Visibility Limited.