Who is black box insurance best for?
Chances are if you're considering getting a black box fitted into your vehicle, you likely fall into a high-risk category. This may be due to your age, driving inexperience, driving convictions or past claims history. These customers typically face high premiums to get their vehicles insured, so proving to the insurance company that their driving is safe is a way to get those costs down. Allowing the insurance company to track such driving behaviour as braking, cornering, and speed via GPS to see how well the car is being driven is one way.
Other drivers that may be considered high risk by some insurance companies include:
Convicted drivers and drivers with endorsements
If you have accrued a few points on your licence, it can be challenging to get insurance without restrictions due to your past actions. Also, having a criminal record will increase your car insurance cost, whether your conviction is motoring-related or not, because insurance companies see you as a high risk.
Drivers in high-risk jobs
Your occupation can put you in a higher risk insurance category. Journalists, bookmakers, pub landlords, bar, or club owners are just a few examples of drivers in high-risk jobs due to a range of factors, including driving at night or even the chances of driving after having consumed an alcoholic drink. Unfortunately, these factors can affect your car insurance premiums.
Drivers in high-risk postcodes
Often drivers find it difficult to find reasonably priced insurance because of their postcode. According to Compare the Market, 90% of all car insurance claims occur within five miles of the driver's home. The highest risk areas are often found in cities such as London and Manchester, where you are more likely to get into an accident, and vehicle crime is more frequent due to higher levels of traffic.
Drivers of high performance and sport cars
Statistically, high performance and sports cars are more likely to drive faster and, therefore, may be involved in more serious accidents, which understandably makes insurance companies consider them high risk for car insurance premiums.
Statistics prove that young drivers are more likely to be involved in high-speed crashes and crashes caused by losing control of the vehicle. According figures from the Association of British Insurers (ABI), drivers between 17 and 24 are three times more likely than other road users to be responsible for “catastrophic claims”. This may be because young drivers have less experience on the roads and poor hazard perception skills, making them more likely to get into accidents.
If you are under the age of 25, Nationwide Vehicle Contracts has put together a short guide on leasing for young drivers, with everything you need to know about age restrictions, passing the credit check and the types of contracts available.
New drivers are regarded as high risk to insurance companies as they are often inexperienced, and overconfident. According to ALA Connect, one in five new drivers will be involved in a collision in their first six months of driving, which is one of the reasons why insurance providers charge such high premiums.
It’s worth noting that a new driver isn’t always a young driver. A new driver may be a teenager getting their driver's license for the first time, someone who is older and getting their driver's license later in life or drivers who have never before had a license in the UK. The New Driver's Act covers new drivers and its primary effect is to impose a two-year probationary period when the full driving licence is issued.
What are the advantages of a black box?
Having an infamous black box fitted to your car is no longer the stigma that it once was. Getting a black box fitted is a great way to cut down high insurance costs, especially for young drivers.