You’re here because you’re confused about black box car insurance, right? We understand. If you’ve only heard rumours or snippets of conversations about them, it can be a tricky one to get your head around.
We’re all about making life a little bit easier, so we’ve rounded up some of the most common questions about black box car insurance and even gone and answered them too. We’ve also put on our myth-busting hats and are ready to set the record straight on a few untruths floating around.
What is black box car insurance?
Black box car insurance is simply car insurance that requires you to plug a small telematics device into your car. These devices have traditionally been black and box-y (though modern devices such as our Miles Tracker are more discrete) hence the name. Depending on the device, you can either do this yourself (as with our Miles Tracker) or with the help of a professional.
Once installed, the device sends data to your insurer about your driving so they can work out how much to charge you for insurance.
What are the benefits of black box car cover?
The point is to try and save money. Whether that’ll work out for you, depends on what information the device is recording and how that’s used to figure out the price of your cover.
With By Miles, you pay a fixed amount to cover your car while parked – and then a per mile rate (usually a few pence) for the miles you drive. The Miles Tracker records your miles – and the less you drive the less you end up paying.
We’re a little out of the ordinary though. Most black box insurance is a little more complicated than ours when it comes to pricing. They’ll look at all kinds of data about your driving (things like speed, how hard you break, and the times you travel) and give you a driving score. If you get a good score, you can expect to pay less.
There are also some solid benefits when it comes to proving fault during an accident, as the black box records driving data that can work in your favour (or equally, against you). It can speed up the claims process and avoid all that ‘she said/he said’ back and forth that tends to happen.
Given that telematics devices track your location, they can help find your car if it’s lost or stolen. That’s something we here at By Miles like to shout about, as a big proportion of our member’s lost cars have been successfully found thanks to our handy Miles Tracker.
How do you fit a black box?
Each device is different. Some black boxes are easy to install yourself, while others require the help of a mechanic or professional.
The details should be made clear before you buy the policy, so you can weigh up whether the potential installation fee is still working out as a cost effective choice for you.
If it’s a DIY installation job, the insurer should provide you with easy-to-follow instructions on how to get the black box fitted correctly. At By Miles, we’ve even got some handy personalised illustrations to help with each car type. We’re happy to say the vast majority of our members get there’s plugged in in 2 minutes or less.
(That said, you don’t actually need a Miles Tracker to enjoy the perks of being with By Miles. Thanks to our Connect platform, if you have a compatible smart car, we can collect mileage data straight from the vehicle. Futuristic, right?)
What does a black box monitor?
At By Miles, we’re all about rewarding lower mileage drivers. With us, your cover costs less the less you drive – so we use our Miles Tracker to keep track of your miles. (Really does what it says on the tin, to be fair).
We don’t use other information to determine the price you pay for cover, but other companies might. Information they might factor into their pricing could include:
- The distance you’ve driven.
- Where you’ve driven.
- Your speed.
- The quality of your driving.
- Whether you’ve had an accident.
Some people can be put off by black box insurance because of the tracking, but it’s easy to forget that the device you’re reading this on right now is tracking a lot more. Ultimately, if you’re a good driver, it should all work in your favour.
Who is black box insurance for?
It really depends on the type of insurance. A policy like ours could benefit any low mileage driver. Policies that (unlike ours) use a ‘driving score’ might be good for young drivers trying to prove they’re better behind the wheel than other folks their age.
With so many different black box policies available, it’s worth doing your research to find the right one that works for you. While some policies enforce a curfew, it’s worth weighing up whether the benefits outweigh the restrictions for you.
Get a black box insurance quote to determine if this type of car insurance could be a good fit for you.
Is black box car insurance cheaper?
As with any insurance, your specific details and driving history can affect the price. There’s no golden rule to suggest that black box insurance will be cheaper for everyone. And, again, it depends on the type of insurance you’re looking at.
Our pay-by-mile cover is geared (pun intended) towards lower mileage drivers. So if you spend every minute of the day on the motorway, it’s probably not right for you. If, like most people, you find you’re driving less and less – it could be a great fit.
According to independent analysis done by Finder in July 2022, 51% of people could save over £340 with By Miles. Some, like Zafran, have saved over £500.
But that’s just us…
More traditional black box insurance is about monitoring driving ability rather than mileage. Safer drivers should (in theory) come away with a better price than those who tend to be careless on the roads. But it’s not always so obvious how your driving is being scored.
Why should I get black box car insurance?
If you’re an inexperienced young driver, traditional score-based black box car insurance can help get you on the road if you’re struggling to find an affordable traditional policy elsewhere.
If you’re simply a lower mileage driver, you might be able to save money with pay-by-mile car insurance. With By Miles, you’re charged based on how far you drive, not how well.
How is the black box data used?
The main use is to figure out how much your cover is going to cost. At By Miles, our cover is pay-by-mile, so we use our Miles Tracker to measure your mileage.
With a traditional black box car insurance looks at a bigger range of factors. Providers will use the data they collect to price your premium and adjust it accordingly. Things like driving ability, frequency and distance can all contribute to the overall cost.
Most will allow you to view stats they’ve collected about your driving, so you can keep track of your progress and make special efforts to keep your costs low.
The data can only be handed over to the police following a court order.
At By Miles, we only ever use the data for the benefit of our members. We’ve even seen cases where the location of a car has been linked to criminal activity, but have been able to prove its exact whereabouts (nowhere near the crime, luckily) thanks to the Miles Tracker.
How do I remove a black box?
Depending on whether you’ve installed the black box yourself (like you would with our Miles Tracker) or with the help of a mechanic, the removal will likely follow a similar process.
There can be associated costs with the black box, such as installation and removal fees, so always check that with the insurer before you buy the policy.
How does black box insurance encourage safer driving?
Unlike ours, most black box car insurance works by giving you a driving score. Since the cost of your insurance will lower as you build up a reputation as a good driver with the insurer, your driving should become safer as a result.
If every driver on the road was using a black box, it’s likely we’d see less speeding and erratic driving.
How long do I need to have a black box for?
Most car insurance policies cover you for twelve months, so that’s how long you’ll be required to keep the black box fitted for.
If you decide to renew, it will stay put. If you choose to leave the policy, you simply remove the black box (or get a professional to do it) and then return it to the insurer. This may come with a fee, so always check before you buy the policy and make sure you’re happy with the finer details. Nobody likes a little surprise charge at the end.
What is pay-by-mile black box insurance?
Rather than using your driving ability to price your premium, pay-by-mile uses telematics to measure the miles you drive, that’s it. There’s no driver scoring and no curfews.
By Miles offers pay-by-mile car insurance that works best for drivers doing under 7,000 miles a year. There’s no penalty for driving more or less than your estimated miles. Drive a bit more and you’ll pay a bit more. Drive less and you’ll pay less. Simple.
It also comes with a host of app features, like Car Medic, congestion charge reminders and a Find My Car feature. Check out the full list of policy features and get a quick quote in less than a minute here.
Busting common black box car insurance myths.
- Your insurer won’t report you to the police for speeding (unless they’re ordered to by a court).
- The black box only tracks driving data for the sake of your premium. There’s no funny business as that’s highly illegal.
- Not every black box policy has a curfew, only some. Do your research before you buy.
- Bad driving doesn’t necessarily mean that your policy will be cut short.
- It’s reliable. The data comes from the car, which isn’t going to give false information.
- Pay-by-mile car insurance (like ours) doesn’t score your driving, it just uses the data to measure the miles you’ve driven and charge you based on that.
- Not every black box requires a trip to the garage to get it installed. Some are easy to plug in with no more help than a set of instructions. The vast majority of our members manage it in less than 2 minutes without any help.
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