Drive smart, pay less: the perks of black box insurance

You’re a new driver. After untold hours of driving lessons you’re armed with a full driving license and ready to hit the road in your first car. There’s a problem, though. A potentially very expensive problem: insurance. It’s a legal requirement in the UK that a driver must be insured on the car they’re driving. And, for new drivers, insurance can cost a fortune. But help could be at hand in the form of a black box.

You’ve probably heard the term black box in reference to aeroplanes and its job is to record data from the plane during a flight. If anything goes wrong, the black box can reveal what happened. A black box in a car works on exactly the same principle, recording data about the car and journey every time you drive.

Many insurance companies offer cheaper policies to new drivers if their car is fitted with a black box – it’s one of the best ways to get cheaper insurance. In this guide, we’re going to explain everything you need to know about the black box including what it’s used for, how it works and how much money you could save by having one fitted to your car.

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What’s the point in a black box?

New, young drivers are more likely to be involved in a crash than any other group. Indeed, it’s a sad fact that road traffic accidents are the UK’s leading cause of death in men aged 18 to 24. Young drivers are faced with much higher insurance premiums as a result. Opting for a policy that includes a black box can help reduce those costs, potentially by thousands of pounds.

The box monitors when and how you drive. If it turns out you’re a safe driver, you’re premium could be reduced. But if you’re reckless, you could face much higher insurance bills. If you’re after some tips, check out our driving guides.

How does a black box work?

A black box monitors how, when, and where you drive. On every journey, it records the time of day, what roads you use, the speed you go, how hard you brake, and how quickly you go around corners. In some cases, it even monitors phone usage. The insurance company then uses that data to determine if you’re a safe enough driver

If you mostly drive during the day on major roads, stick within the speed limit, brake gently and corner smoothly, you should be rewarded with a big drop in your premium come renewal time. On the other hand, if you mostly drive at night on country roads like your hair’s on fire, you could be hit with a big increase or even be refused cover.

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How much could you save with a black box?

We got a sample insurance quote for an 18-year-old student called David who lives at home with his parents in the quiet Yorkshire town of Harrogate. He passed his test six months ago and has managed to squeeze a 60hp 2014 Skoda Citigo out of his parents and needs a policy that covers social use and commuting for 8,000 miles a year. The little Skoda’s ideal for a new driver because it’s easy, safe, efficient and one of the cheapest cars to insure.

Without a black box fitted to the car, the cheapest quote we found on mustard.co.uk was a slightly staggering £4,217.92, paid in a lump sum. David would have to fork out another £350 or so to pay monthly. To put that number in context, the car cost about £5,000 to buy.

With a black box, the bill drops to a still not insubstantial £2,547.06 paid annually, or £2,920.62 paid monthly. That’s a potential saving of around £1,700 that could go towards fuel and other running costs.

If David proves that he’s a safe and responsible driver, he should earn a chunky discount on the next year’s premium. On top of the no claims discount he’ll have accrued.

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Is black box insurance really that simple?

Yes. Black box policies are available from many insurers and the provider will come to you to fit the device to your car. But by no means all insurers do black box policies and some of those that do may not consider you suitable for one, so you may have to shop around.

Are there any negatives to getting a black box?

While a black box can help lower your insurance premiums, there are a few downsides to consider. It monitors your driving closely, so if you often drive late at night or have a heavy foot on the accelerator, it could work against you. Plus, some drivers find the constant monitoring a bit intrusive. If you prefer a more relaxed approach to your driving, a black box might not be for you. There’s certainly no harm in considering it, though, and as we’ve shown it could cut thousands from your premiums.

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