Is black box car insurance right for you?

Car insurance

Is black box car insurance right for you?

By Simon Miller

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Is black box car insurance right for you?

Black box car insurance – where the premium you pay is based on your performance behind the wheel – is growing in popularity, but is it right for you?

According to the British Insurance Brokers’ Association, the number of drivers opting for black box cover has increased by 40% in the past year. But should you opt for it?

Isn’t black box car insurance just for younger drivers?

Black box cover, especially when it was first launched in the UK, was mainly aimed at young drivers, as they pay much more than the average motorist for cover.

However, black box car insurance isn’t just for fledgling motorists – the product can also be suitable for older drivers and those who drive infrequently.

If you are looking to buy, remember that some policies are aimed specifically at young drivers and may have an age limit.

Find out more: Black box car insurance rewards and age limits

Is my data safe?

In order for black box insurance to work, your insurance company constantly tracks your behaviour behind the wheel to see how you drive.

This has led to some concerns about the security of your data; however, data-protection laws mean that your driving data is protected.

Your data may be shared with third parties who work with the insurer, such as claims professionals, and your data may be handed over to the police if they have a court order asking for it (or if you give the police permission or are suspected of fraud).

Does it work out cheaper?

Black box car insurance is not always cheaper than traditional insurance, so it is best to check both – especially if you are struggling to find affordable car insurance.

If you are looking to buy, make sure you check the fees charged by black box insurers so you're not in for a nasty shock if you decide black box is not for you, and want to cancel or change your policy.

Find out more: Black box car insurance fees and charges

Also, make sure you understand the way your policy rewards you for good (and bad) driving behaviour.

Some providers return some of your premiums during the life of the policy while others, based on low mileage, give you bonus miles for driving well. Some only reward you at renewal, meaning you need to use the policy for at least two years before you can make a meaningful saving.

Check the policy document carefully to make sure you fully understand the product, and its benefits and disadvantages, before you buy.