Once you have passed your test you then have to tackle the task of insuring your car. New driver insurance is notoriously expensive and more and more new drivers are turning to Black Box Insurance (telematics) to help reduce the cost. But what are the advantages and disadvantages to it? Is it worth keeping within a certain number of miles per month or only being able to drive at certain times of the day or are you better off paying the additional costs to drive as and when it suits you? Everyone has different needs but here are some pro’s and cons of black box insurance to help you decide.
Students and younger drivers – New Drivers are quite often inexperienced and, as a result, are hit with higher premiums. Black box cover might appeal to them as they often keep hours outside the usual 9-to-5 and may have no great need to drive at night.
The elderly – Others who might benefit include the elderly, who also may not need to drive during rush hour conditions, or at night, and ordinarily must pay higher premiums due to age.
Homeworkers – Those who work from home and are young drivers, or perhaps are older but still inexperienced, might also benefit for the same reasons as for students and the elderly.
Encouragement to drive less – Black box cover might also encourage less driving and therefore help lower petrol and associated usage costs, such as garage bills. This also has the side-effect of making it less likely you’ll be involved in an accident.
Pinpoint stolen vehicles – The black box technology means that if your car is stolen, it’s easier to track as it includes GPS systems.
Temptation to rush – You might be tempted to drive in a rush if a ‘curfew’ hour, the time during which it’s been agreed you won’t drive, is about the be breached.
Fines – Many black box policies hit you with fines which are added to your premiums if you exceed the policy terms, such as by driving more miles in each month than agreed.
Personal circumstances – If your circumstances change, such as starting a new job which requires a commute, you may have to change your cover, for which there may be a charge.
Urgent situations – Situations could arise which mean you feel compelled to drive at a time of day, or for a distance, that is outside of the terms of your black box cover; if a family member becomes ill and needs your help, for example.
Additional charges – Changing vehicles and/or having the black box system removed can incur additional charges.