Figures provided by the British Insurance Brokers’ Association (BIBA) show that half a million people are installing a black box into their car to make their car insurance cheaper, with the popularity of these telematics devices rising 40 per cent in the last year.
In 2009, 12,000 cars had a black box installed, whilst there are now 450,000 cars with a black box. These devices monitor speed, acceleration, braking, length of journey and more factors that can indicate how safe a driver someone is, which can affect their insurance cost.
BIBA surveyed 30 telematics brands to gather their results, and they said that for some young drivers – for whom black boxes are most popular – they have been able to save upwards of £1,000 as a result of having a telematics policy.
Young drivers (those aged 17 to 25 years), often face very high insurance premiums. They can therefore benefit from installing a black box to show to their insurer that they are a safe driver, and bring their insurance policy price down.
“Telematics is becoming the motor insurance solution of choice among young drivers as they can’t take control of their own premiums by electing to have their driving behaviour monitored,” said the executive director of BIBA, Graeme Trudgill.
“Industry statistics show there is a 40 per cent drop in crash risk when a new driver has a telematics policy. Telematics equipment also helps reduce theft claims, many doubling as vehicle tracker devices.”