Should I consider a black box insurance policy?
Telematics insurance will not be suitable for all drivers, but it's a growing area with the potential to offer benefits in terms of cost, security and improved habits to motorists of all ages. In our quotes process you can compare and choose between black box options and traditional policies, with Defaqto star ratings to help - why not take a look?Sean Davies, Gocompare.com
How can we help you with telematics car insurance today?
Telematics car insurance - also known as black box insurance, GPS car insurance, smartbox insurance, pay-as-you-drive insurance and usage-based insurance - works either through a small black box device that's fitted to your car, or a mobile phone app, which can collect the following type of information:
Need more information?
- The speed you drive
- Braking and accelerating habits
- Distance travelled
- Time of day you travel
- Types of roads you travel on
Your premium will be calculated depending on the data gathered, with drivers who meet or exceed the agreed criteria benefiting and those who don't suffering.
Furthermore, if you have a black box it can act as a tracking device, so if your vehicle is lost or stolen, you (or the police) can find it sooner.
Some policies will give you access to an online dashboard where you can review your driving and learn to improve it.
Telematics has traditionally been seen as an attractive option for safe, young drivers looking for affordable premiums, but it has the potential to offer benefits to good drivers of any age - you can read more about telematics for experienced and older drivers in our article.
Did you know...?
- Black box insurance has been on the UK market since 2008
- By April 2018, all new EU cars will have to have black box technology known as eCall installed
Such policies offer an innovative solution to rising motoring costs, but remember that they won't be suitable or beneficial for all drivers.
There may be restrictions on use, not all insurers will monitor the same things and the way they handle the data and allow access to it can also differ.
If you search for telematics insurance through Gocompare.com, after completing our easy-to-use forms your results table will show you the options.
It will also display non-telematics quotes, with both types of policies clearly indicated and ordered by price.
Similarly, if you've gone through our standard car insurance quotes process you'll also see the telematics policies available, allowing you to compare and contrast the different choices.
By 2024 telematics will be an opt-out rather than an opt-in
The results table will show the name of the provider, any excess and whether the policy includes legal assistance, courtesy car cover, personal accident insurance, windscreen cover and/or protected no claims bonus.
If you choose a telematics option, remember to check whether the rating factors used by the policy provider are based on your driving behaviour and/or mileage.
If mileage is used as a rating factor and you exceed the annual allowance your premium may increase, whereas behaviour ratings will include things such as the way you accelerate and brake, the speed you drive, the type of roads you use and the time of day you travel.
Should you find an option you like the look of, clicking proceed will give you access to more specific information about the product including, when available, star ratings from independent financial researcher Defaqto.
You can also read our guides for more in-depth information and guidance, and take a look at our frequently asked questions on telematics.
Note that the prevalence of telematics policies only seems set to grow in coming years, with suggestions that insurers may try to insist that new drivers take out such a policy.
"By 2024 telematics will be an opt-out rather than an opt-in," said Gocompare.com's Tom Lewis.
"People may opt out because they're bad drivers, they're unhappy with privacy arrangements or they have an old car, but they'll have to accept a higher premium for opting out."
By April 2018, EU regulations mean that all new cars will have to be installed with black box technology known as eCall, which is intended to help emergency services find crashed vehicles.