A financial expert has clarified whether black box insurance is the best way to save money on your car coverage premium — and her answer depends on a few key lifestyle factors.
Black box insurance involves a motorist placing a small device in their vehicle to monitor their road behaviour.
This can lead to safe driving discounts, helping mitigate financial strain from rising coverage costs.
Liz Hunter, Director at Money Expert, said: “With over 50% of UK adults revealing their car insurance has increased by up to £100 in the previous year, black box insurance can be an effective way to cut pounds off your premiums.”
If you’re wondering whether black box insurance is right for you, Liz suggests asking yourself the following questions:
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Do I consider myself a safe and confident driver?
Am I comfortable with my data being collected?
Do I rarely drive at night?
If you answered yes to these questions, black box insurance could unlock significant premium savings ranging from 30 to 60 per cent, according to the British Insurance Brokers’ Association.
However, drivers who answer no to these questions may increase their car coverage costs with a black box device.
Hunter stated: “While black box insurance aims to reward safe driving rather than penalise minor lapses, consistent risky driving could have consequences on both your premium and coverage.
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“Regular harsh braking and acceleration – especially if this involves exceeding the speed limit – will bring your driver score down, meaning your premiums could go up significantly when it comes to renewal.
“Worst-case scenario? If your driving is considered dangerous, your insurer could cancel your policy altogether. This could also make it difficult to gain coverage from another provider.”
Still, most UK insurers say they won’t inform the police if you speed unless there’s a policy inquiry or a severe incident.
Motorists must remember to keep black box insurance devices plugged in at all times to remain eligible for safe-driving discounts.
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