New drivers could save with black box insurance
For many, having a car symbolises freedom, leisurely traveling and independence. So, the thought of getting insurance that monitors exactly what you’re doing and where you’re going might seem like it’s taking all this away before you’ve even got started! Believe it or not, that doesn’t have to be the case – especially if you’re a safe driver.
In this post, we explain what black box insurance – also called telematics insurance – actually is and how it could save you money. We’ll also debunk some of the most common myths that tend to put drivers off getting it.
What is a telematics insurance policy?
A telematics (black box) insurance policy usually involves having a small device installed within your car that will allow your insurance provider to monitor your driving habits. This can include factors such as how fast you drive, how sharply you brake, whether you check your phone whilst driving, and what times of day you go out on the road.
How can black box insurance save you money?
The idea with a black box is simple: drive safely, and you could be rewarded with lower insurance premiums.
Often you can save money from the get-go with black box insurance policies, as the premium is usually slightly lower than other traditional policies. This is because the provider knows they can hike it up if they see evidence that you’re a riskier driver – so be wary if you know you’re prone to being a little reckless behind the wheel.
With some providers, like Veygo, your driving score will be reviewed every three months which will be reflected in the price of your monthly premium. Good driving = cost savings!
Myths = BUSTED
All sounds great so far, so what’s putting people off taking out a telematics policy and saving money? Chances are it’s one or more of the common myths that often float around families, friendship groups and even on social media.
We’re here to debunk these myths, so that you can make an informed choice about whether a telematics policy might be right for you. If you’re ready to find car insurance, you can compare quotes now to find a policy that’s right for you.
Myth 1: “Telematics policies give you a driving curfew”
Perhaps the most common misconception about this type of policy is that it will enforce a strict curfew on driving times, meaning you can’t drive early in the morning or late at night without being penalised. Not much use if you’re on night shifts or traveling to the airport!
Whilst some insurers might give these trips a poorer rating, most don’t impose actual curfews preventing you from driving at these times. Better still, there are insurers like Marmalade and Veygo that don’t take the time you drive into account at all when rating your trips!
Myth 2: “You’ll be charged money for every mistake”
Telematics policies don’t operate on a zero-tolerance basis. A harsh brake or a single incident of speeding won’t immediately increase your premiums. The providers track trends over time, focusing on patterns of unsafe driving rather than isolated mistakes.
So, don’t worry – you’re not going to be financially punished for a slip-up here or there.
Myth 3: “This insurance is only for new or young drivers”
While it’s true that young or new drivers might benefit the most from black box insurance due to the extortionately high premiums found elsewhere, these policies can also save more experienced drivers money too.
If you’re looking for ways to save on your monthly or annual bills, taking out a telematics policy could result in a decent saving. Plus, if you prove you’re a safe driver, you’ll likely reduce your premium in the coming years too!
Myth 4: “Telematics boxes constantly track your location”
In the current world where protection of privacy is often at the forefront of our minds before agreeing to any sort of location tracking, having a black box installed on your car might seem the most severe invasion of it.
However, whilst black boxes can collect location data, insurers will typically only use it to understand the types of roads you’re driving on or the length of your journeys. They’re not constantly tracking your every movement and won’t ever use this information beyond what is required to assess the safety of your driving.
Myth 5: “You need to wait for a physical box to be installed”
If you’ve just secured a new ride, there’s no chance you’re going to want to wait a week or two before you can use it. Fortunately this is another common myth and most telematics policies do allow you to begin driving as soon as the policy is taken out so long as the box is installed shortly after.
Some providers like Veygo have taken things one step further. If an insurance policy is taken out with Veygo, you’ll just need to download a clever app for your smartphone which can monitor how you drive in the same way as a traditional black box.
In short, telematics insurance could benefit the budgets of all safe drivers – younger, newer, older, and experienced alike. By understanding how these policies work and separating the myths from the facts, you might find that black box insurance is a good option for reducing your premiums and remaining mindful of your driving habits.
Happy driving!
This information is intended for editorial purposes only and not intended as a recommendation or financial advice