When you've just started driving, buying a new car is super exciting; however, it can often be difficult for new and young drivers to find affordable insurance coverage due to lack of driving experience and age.
Black box insurance can be a good way for young and inexperienced drivers to reduce the price of their premiums during their first few years on the road.
This article will outline the benefits and potential drawbacks of black box insurance so that you can decide if a black box insurance policy is worth it for you.
Black Box Insurance Benefits
Fair Pricing
With black box insurance, your premiums are based on your actual driving habits rather than statistics. When you purchase a black box policy, your insurer will install a tracking device that monitors your driving habits. If you're a safe driver, you won't be penalised for factors like age or lack of driving experience.
Promotes Safer Driving
Knowing your insurer monitors your driving behaviour can encourage safer and more responsible road use. When you know that reckless driving could lead to higher premiums, you may be more inclined to stick to the speed limits, avoid sudden braking and harsh acceleration, and overall drive more cautiously.
Safer Driving is Rewarded
With a black box insurance policy, safe and responsible drivers can prove they are low-risk, thanks to advanced tracking and monitoring. Most black box insurance providers will reward safe drivers as an incentive to continue to drive responsibly on the roads.
Rewards differ from insurer to insurer, but often, safe drivers will be rewarded with discounts on their premiums, shopping vouchers, or extended mileage allowances.
Provides Feedback and Room For Improvement
The data collected by the black box can provide valuable feedback about your driving habits and behaviours. You should be able to access this feedback and your driving scores via an app or portal. This feedback can help you become a better driver by highlighting areas where you can improve your driving habits.
Tracking and Theft Recovery
Black boxes are tracking devices, meaning if your car is stolen, your insurer can track its location and recover it.
Evidence in Case of Accidents
In the event of an accident, the data from the black box can serve as valuable evidence for insurance claims, potentially helping your insurer determine liability quickly.
Potential Drawbacks of Black Box Insurance
Curfews
Driving at night carries more risks: tired drivers, wildlife on the road and impaired visibility. Because of this, many black box insurance providers restrict driving during the night, usually between 11pm and 5am. Although this might be fine for some people, this might be a considerable drawback for some, i.e., shift workers.
Mileage restrictions
The more time you spend driving, the more your risk of an accident increases. To reduce this risk, many black box insurers limit the miles a policyholder can drive annually. This restriction can be impractical for people who commute long distances regularly.
Unsafe drivers may see their premiums increase
The primary purpose of a black box insurance policy is to offer affordable premiums to new and young drivers who drive safely and responsibly. If you drive erratically and are dangerous on the road, you could see your premiums go up.
It's important to note that while the benefits of black box insurance far outweigh the negatives, it may not be suitable for everyone. It's essential to carefully consider the pros and cons of a black box insurance policy to ensure it meets your needs.