What is a black box?

A black box is a device fitted to your car as part of your car insurance deal – if you choose to go for black box insurance. But what does it do and how does it help? Read on to find out.

There is a proper word for black box insurance, and it is called ‘telematics’. It’s type of car insurance that rewards you for good driving.

What is taken into consideration?

Lots of things are taken into consideration and of course it depends on the insurer’s criteria, such as:

  • Braking
  • Cornering
  • Steering
  • Speed
  • The time you are driving
  • Mileage
     

How are you rewarded?

Again, different insurers have different measurements for this, but it can be anything from a portion of your premium being returned when you renew your insurance to bonuses based on low mileage. Be aware you can also come up against penalties if you

Extra costs

Bear in mind that with insurance can come extra costs, and black box insurance is no exception to this rule. Changing your vehicle, installing the box and removing it may all come at additional costs to your premium.

Weighing them up

Let’s start with the pro points first. If you are a good driver and drive within the guidelines of the provider, it also encourages you to be a safer and more considered driver – which can only be a good thing. In the event of your car being stolen, black boxes can help locate them, which is added peace of mind. They are best suited to new drivers, older drivers and those who don’t drive a lot.

However, if you are a bad driver, you will receive higher premiums and could be at risk of your insurance being cancelled. The extra charges for installation and removal should be considered and if you drive a lot, it may not be suitable for you. Lastly, it could restrict your driving as there are set requirements as part of the deal.