The little black box is helping drivers beat the spiralling costs of car insurance, new statistics have revealed. On average car insurance premiums have risen by 30% over the course of the last year, however thanks to advances in telematics and a fall in the cost of these monitoring devices, more and more drivers are able to take advantage of this type of car insurance which leads to a significant reduction in the cost of an annual premium.
The black box is the same size as a smart phone and is installed in the car to analyse the driver’s style, skill, habits, and time of day they are driving in order to personalise the motorist’s premium.
Those who display careful and non risk taking driving styles will more likely than not, to benefit from a lower rate of cover. For that reason, insurers are offering the technology to first time and younger drivers in a bid to help reduce the often unaffordable high rate of cover for these motorists.
More and more insurers are now offering black box systems as the price of this type of technology has fallen. Those drivers who have taken out a policy using telematics to monitor their driving habits have noted a 22% reduction in the cost of their annual premium, which equates to as much as £800 in selected cases. So if your car insurance is due for renewal, it’s worth investigating whether this type of cover could be beneficial for you as the savings can be substantial.