21 Mar 2016

Can Black Box Insurance Really Save Young Drivers Money?

You’ve finally got your licence and found that freedom of being able to take to the roads – it’s an exciting time!

However, once the excitement of passing your test has worn off, you may be faced with the grim reality of the staggering cost of car insurance for new drivers. Rising premiums are a real issue for those getting behind the wheel for the first time, and many drivers are turning to black box or telematics insurance as a way of driving down costs.

Telematics insurance means that your driving is electronically monitored, and your premium may go down, or up, as a result of your driving. Several areas are taken into consideration, including cornering, breaking and acceleration. Those who are deemed to be safe drivers will receive money back.

Over the last five years, since black box insurance was first sold by major names such as the Co-operative, the number of young people signing up for this type of insurance has grown significantly, and with good reason. The Co-op suggests that it has returned over £7.4 million to motorists in their first year on the roads.

Insurethebox also suggest that black box or telematics insurance could save young drivers a whole lot of cash – on average 72 per cent of those aged between 17 and 25 could save over £200 when renewing their policy.

Recent research suggests that telematics insurance has never been so popular – comparison website uSwitch suggest that an impressive 60 per cent of people would now consider black box insurance in order to bring down their premium price. Overall, uSwitch have seen a 66 per cent rise in customers taking out black box policies.

While you might be wary about the privacy concerns of having your every move monitored by an electric device fitted to your car, it’s worth weighing up the positives. If you are thinking of taking out a telematics policy, ensure that you read the small print to check out the fines you may receive as a penalty if you make a mistake while driving – avoid insurance companies that charge excessive amounts.

Has black box insurance made a difference to your insurance premium? Join the conversation on Twitter @WinnSolicitors.

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