Pros and Cons of Black Box Insurance

Getting insurance as a young driver can be an expensive undertaking for a number of reasons, so in recent years underwriters have looked upon technology to create a cheaper option for this section of the market. An in-car telematics device, known as a “black box”, is a way of insurers monitoring the driving habits of inexperienced drivers in exchange for a cheaper insurance premium. But what are the pros and cons of black box insurance?

Pros

1. Learn to Drive Correctly

The black box concentrates on the fundamental habits of driving, especially for first time drivers: what speed you drive at, how smoothly you brake or take corners and even if you are using your phone behind the wheel. Taking driving lessons to form good & safe driving habits early will set you up to be a better driver for life even if you plan to go for young driver insurance without a black box.

2. Reduce the Cost of your Insurance

Insurance with black box gives you the opportunity to reduce the cost of your car insurance based on the merit of your driving. A frustration for many young drivers is that they can be penalised for the poor driving performance of others in their category. Telematics insurance allows you to be assessed as an individual.

3. Cheaper Option for Drivers with Convictions

Getting insurance as a driver with prior convictions can be very difficult even if your habits have improved. Black box car insurance offers an opportunity to be assessed on your current behaviours and could help you save money.

Cons

1. Bad Drivers will be Penalized

A black box can be a great way to reduce insurance cost but only if you are driving in a safe manner. Breaking the speed limit, braking or accelerating violently or cornering poorly consistently will lead to higher premiums and a black box policy will end up costing you more in the long run.

2. Curfews or Journey Restrictions

Many accidents/breakdowns on the road occur either at times of peak traffic or late at night so some black box policies can have restrictions around when the car can be driven. Some policies may also restrict the number of journeys or distance that can be travelled in a given time period. This is worth looking out for if you are a driver who needs to be on the road during specific time periods & will need to use the car very frequently. Also, it is worth to have  breakdown cover along with car insurance to avoid unnecessary hassle on roadside.

3. Less Careful Named Drivers

You might be a very careful driver but if another named driver on your policy has some bad habits they could push up the cost of your insurance. All data from the black box will count towards your policy no matter who is driving.

Feedback for Parents

If your child is learning to drive on their own, a black box can provide assurance as a parent that they are doing so in a safe manner. Accessing the data from the black box can help to put your mind at ease that your child is driving sensibly or will flag an issue in habit that can be addressed before it may result in an accident.

Find out more about the benefits of our young driver insurance or call one of our specialist sales agents on 01 582 7108 for a quick quote.