Eight in ten drivers don’t know a black box gadget can save them up to £500 on car insurance
Motorists are throwing away up to £500 a year on car insurance as they are unaware they could pay less with a ‘black box’ installed in their vehicle.
New research has found eight out of ten motorists are unaware they can benefit by fitting the gadget to their car – offering average annual savings on premiums of £200.
The black box is a telematics device with motion sensors that detect hard acceleration, braking, sharp turning and speed limit violations.
The black box is a telematics device with motion sensors that detect hard acceleration, braking, sharp turning and speed limit violations
The ‘Big Brother’ gadget allows insurers to monitor driving style remotely.
Premiums come down by an average 20 per cent for those agreeing to have one fitted because it usually makes a motorist drive more safely.
If you drive badly the insurer contacts you and if this continues it cancels the policy.
The technology was initially targeted at young motorists who have just passed their driving test and therefore usually pay the highest premiums – and accepting a black box was the only way they could afford to drive.
But the number of telematics policies on the market has more than doubled in the past three years – and there are now at least 55 black box policies targeting the full range of drivers.
James Blackham, founder of insurer By Miles, which conducted the research, says: ‘Telematics policies offer huge savings for drivers of all ages.
More experienced drivers often do not appreciate being told how they should drive but are suffering higher premiums as high as £500 a year.’
A black box is typically fitted just beneath the dashboard or steering wheel.
It is usually installed for free or for a one-off charge of perhaps £100. Motorists can benefit from cheaper insurance with one of these devices.
Yet so far only about a million of the 35 million drivers in Britain have had one fitted.
Comparison websites such as MoneySuperMarket provide details of motor insurance deals with or without a black box fitted.