Black box insurance is growing with popularity among younger and less experienced drivers as a method to bring premiums down.
However, it has a bit of a bad reputation in some quarters due to a number of myths and untruths having been spread about it.
What is black box insurance?
A telematics device will be fitted to your car, recording several data points about your driving style.
In the past, insurers would charge higher premiums for young and inexperienced drivers as they were statistically at greater risk of being involved in an accident.
It’s just one of several products designed to make driving more accessible, including bad credit car finance, hire purchase deals and the rise of leasing.
The myths
Now we’ve established how it works, you might have some preconceived notions about the process. So, let’s clear things up.
Insurers will share your data
The data your black box collects is subject to the same restrictions as other elements of your life under the GDPR.
By law, your insurer cannot share the data with other parties without your consent and if you have any concerns about how your data will be used your insurer should have a full policy in place that can put your mind at ease.
The police will be informed if you speed
If you do creep above the speed limit, it won’t set alarm bells ringing at the local constabulary. Police may be able to access the telematics data if you’re involved in an accident or commit a serious offence, but it’s not there to catch you out. It’s purely to monitor your driving style to better inform insurers.
The box will record conversations
The device won’t have any sound-recording capabilities, so any conversations – or dodgy singing along to the radio – will be for your ears only.
You will be subject to curfews
If you need to drive late at night – for work, an event, or to put a baby to sleep (it happens!) – that’s absolutely fine. The times you drive will not have any bearing on your insurance.
Your mileage will be limited
When you take out insurance, you’ll be asked to estimate your annual mileage. If you creep above this, your black box won’t be able to impact the car and insurers will only use this information to change your premium if you go way above your estimate.
Small mistakes make a big difference
Things happen when out on the road. If you need to brake sharply to avoid an accident, this doesn’t suddenly mean your premium shoots up. The data will be looked at over the long term, with patterns of driving used to inform your premium.
