The Pros & Cons of Black Box Car Insurance

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When you own a car, there are lots of things you need to pay for and consider. There are also things to consider before you own a car too, and sometimes you might find it difficult to even get one. Finance is an option that lots of people turn to, and there are even bad credit car loans available nowadays to help people of all walks of life get the car of their dreams. However, once you have your car, the next things you’ll be thinking about is insurance. One of the most common types that a lot of people like is black box insurance. So, keep reading to find out the pros and cons of black box insurance, and if it’s right for you.

What Is Black Box Insurance?

Black box insurance is when the insurance provider installs a GPS box into your car that sends information back to them about how well you’re driving. The provider will then calculate how expensive your insurance will be based on your driving skills. The provider is able to monitor your driving at all times as the box continuously transmits information back to them. Now let’s take a deeper dive into its benefits and possible drawbacks…

Save Money

Being a careful driver has its benefits when it comes to a black box. Your insurance provider will work out your premiums based on how well you’re driving. So, if your driving is excellent, then you’re more likely to pay less. This is because you’re considered less of a risk on the road and less likely to get into an accident. So, instead of being lumbered into the same category as everyone else, your provider will offer you a tailored premium that is based on your performance, rather than what they think you drive like.

Enhanced Driving

You may think that you’re a great driver, but once you have a black box fitted, you’ll probably become a lot more conscious of what you’re doing, and you’ll notice any bad habits that you may have picked up. You’re also able to view the recorded data yourself, so you can easily see where you need to improve. Some things you might not even realise you’re doing until you see the information from the box. However, once you’re aware of them you can rectify them and improve your driving skills immensely. Knowing that you have lower premiums when you drive more carefully is also an incentive to enhance your driving skills as well. Once you see the reduction in what you pay, you’ll start dissecting your data even more to try and see where you could make more improvements!

Find Your Stolen Car

As a black box has a GPS fitted inside it, many of thethe insurance providers will know where your car is at all times. This means that if it ever gets stolen, they could be able to locate it easily. It can also be a possible deterrent to thieves as a car with a black box is way more likely to be found and the theft can then easily be traced back to them. So, if you want to add an extra layer of security to your vehicle, you may want to consider a black box.

Prove Your Innocence

No matter how careful a driver you are, there may be a time where you’re involved in some sort of incident that needs to make use of your insurance. However, without a black box it can be hard for the blame to be placed correctly. A black box is able to determine if a driver is speeding, accelerating too much, and even if they broke in time. This can be crucial information when trying to settle an insurance claim with another driver. For example, if you did everything correctly and you didn’t have a black box, it could be their word against yours and you may end up paying out your own pocket for something that wasn’t your fault. However, if you have your black box and it knows that you did everything correctly before the accident, then the provider can see this and know that the other person could beto blame. Having a black box can potentiallyhelp prove your innocence and support your own testimony.

Alerts In Accidents

Some black boxes are actually able to alert your provider if you’ve been involved in a crash as soon as it happens. This can belife saving as if you’re unable to phone for help, the provider will be aware of the accident and be able to call on your behalf. Knowing you have this level of protection for not just your car insurance, but your own health and safety can really make a black box worth having.

Bad Driving = More Money

Although there aren’t many drawbacks to having a black box, there are some that you need to be mindful of. One of the most common reasons people don’t want a black box is that if your driving data is bad, then the insurance provider will increase your premiums. So, if you have some bad habits that you don’t care to change, you’ll wind up paying a lot more for your actions. This could be things like driving over the speed limit on numerous occasions, braking too hard, or even taking corners badly. You might think these are things all drivers do, but in reality, they’re dangerous habits that can be deadly. If you aren’t willing to be a careful driver, then a black box probably isn’t for you.

Limited Travelling

Some providers will put travelling restrictions or journey limitations on your car when you have a black box. If you break them, not only will your premiums go up, but they can even impose fines. A curfew is quite common when getting a black box as accidents are more likely to happen at night, so the provider wants to cut down the chances of this happening and preventing you from driving at 2AM is one way to do it. They might also put restrictions on the number of journeys you make too or the number of miles you travel in a certain period of time. Again, this is because it’s thought that the more you drive, the more chance there is of you being in an accident. If curfews or restrictions don’t appeal to you, then you might want to avoid a provider that has these as part of the stipulations.

Named Drivers Can Push It Up

If you have named drivers on your insurance, you need to make sure that they’re driving just as carefully as you. Otherwise, if they drive badly or don’t follow your restrictions, your premiums can easily be pushed up. This is because the black box won’t be able to tell who’s driving, so any bad driving will go against your name and premiums.

Black boxes are a brilliant way to encourage good driving, and they can offer you rewards such as lower premiums to reward careful drivers. However, there are some drawbacks that come into play when you don’t drive well. With a black box, the benefits greatly outweigh the cons and they can really offer all drivers a way to save money and drive more safely. 

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