Black box insurance policies gaining awareness

Almost a fifth of drivers would consider having a black box installed in their car to help lower their premiums, according to a new study.

Research by Consumer Intelligence has found that more motorists are starting to accept the technology as part of certain types of policies available.

The black box monitors how the person behind the wheel is driving and can result in their insurance payments being lowered throughout the year if they demonstrate good behaviour on the roads and low mileage.

At the moment, only around four per cent of drivers make use of the device, however, more insurance policies are now starting to make use of the technology – which is also known as telematics.

Consumer Intelligence chief executive Ian Hughes said: “With nearly one in five drivers saying they would consider a black box policy at their next renewal date it is clear that the market is changing.”

He added that the number of people considering using a black box had yet to transfer to the amount actually taking out a policy, however, new products were regularly being introduced to the market to help this transition along.

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