Could A Black Box System Reduce Your Insurance Premium?

A revolutionary new device known as a ‘black box’ could drastically reduce your insurance premiums in the near future. This clever equipment monitors the driver’s ability to travel safely by accurately measuring aspects such as braking, speed and acceleration.

Discreetly Fitted To Your Vehicle

The black box system involves mounting a small gadget to the vehicle, usually prepared by your insurance provider. The black box is discreetly small and compact, approximately the size of a mobile phone. The telematics device is convenient as it provides no distraction from driving and doesn’t drain your car battery, needing just a small amount of energy to power.

A Real Benefit To Young Drivers

Young drivers in particular can be subject to inflated insurance premiums thanks to the fact that they are at a higher risk of having a road accident. In theory, in future the black box system could abolish this thinking and determine premiums based on how sensibly individuals decide to drive. In effect this would give you the opportunity to choose how much you would like to pay on your insurance premium. If you wanted to pay less then by taking extra care, and staying within the speed limits for example, could drastically decrease your renewal premiums. This could be a major turning point in reducing Car insurance premiums – something that young drivers desperately need at the minute. 

Female Drivers To Benefit Too

Women are another likely candidate to benefit from installing the device. In recent years insurance premiums for women were set to rise considerably, a result of legislation introduced to ban insurance companies being able to discriminate against gender. Women priding themselves on their ability to drive safely could be at an advantage by proving exactly how well they can drive.

A Detailed Account Of Driving Habits

The GPS based satellite system for the black box uniquely sends signals from the black box, attached to the vehicle, to an orbiting satellite and are then forwarded onto the insurance company. The data is processed swiftly and effortlessly to provide the insurer with a detailed account of a person’s driving habits. Details that the data provides include; speed, distance travelled, time, pattern of driving, road type, location, detailed account of an accident and braking. One perceived downfall of the equipment is that some insurers specifically prevent their clients from driving at night as a feature of their policy, restricting the freedom of the driver, so if you want a Black Box insurance policy and want to be able to drive at night, then please check which brokers can give you exactly what you need. 

Any Concerns About Black Boxes?

A disadvantage to the device is peoples’ negative opinion of having their personal driving data recorded and stored. Many feel this is just a way for government bodies such as the police to control the freedom of motorists, however this may be because it is still new to the market, and people are getting used to the idea that this information is being recorded about them. Cost is another issue, determining who will pay for such a sophisticated device is a topic for much debate, though the cost will always be discussed with you when taking out any insurance premium, and will still be far cheaper than a standard Car insurance policy, particularly for a younger driver.

Perfect For Careful Drivers

Considering the way in which insurance rates are increasing, black boxes are likely to become more and more accepted as the latest way for people to get those lower annual premiums they are searching for. Installation of the box may come with a few perceived minor disadvantages, but if you are a young driver, the long term money saved could far outweigh these concerns. So, the mantra is, if you are a safe and reliable driver, concerned you’re being punished for being a part of a group, then Black Box insurance could be your saviour.