Black Box Car Insurance
Saving money with the help of Black box car insurance could be the best way for all drivers and particularly young drivers to reduce the cost of their car insurance quotes. Beware, continually rising UK motor premiums for young drivers! Installing this type of smartbox into your vehicle can work in your favour by rewarding safer driving habits.
The rise of smartbox policies in the UK mirrors the trend in the USA, where this type of technology is prevalent in many different types of vehicle. According to BIBA, over the last two years there has been a five-fold increase in the take up of black box car insurance.
Many studies have been conducted onto whether installing this smartbox technology actually reduces your motor premium? A *study in the UK conducted analysis of 10,000 young driver insurance claims and found that those with telematics black box insurance are less likely to have a crash by 20% than those with standard insurance.
Young drivers with telematics are also less likely than those without to have a serious crash, meaning that their average claims are 30% less costly. Of particular note is the likely up take in the UK from young female drivers. With the new European rules that came into force at the end of 2012 their is likely to be a large number of under 25 lady drivers interested in the technology to offset the likely rise in their motor premiums.
In some instances it is possible to reduce your premiums by up to half. With the cost of motor policies becoming exorbitant, particularly for young drivers the numbers of motorists expected to install this technology in their vehicle is predicted to dramatically increase.
So, to summarise the technology of telematics will enable those drivers with the kit fitted to have their motor insurance premiums based more closely around their actual driving habits and safety record. Currently safer drivers are being penalised by paying for the individual motorists who drive too fast and recklessly, raising premiums for everybody. Read a RoSPA paper from this year detailing this type of technology.
*The research looked at drivers aged between 17 to 25, across the UK.