Research has shown that younger drivers more likely to have an accident than someone who has more experience in driving a vehicle. For many years, insurance companies have been charging extortionate car insurance prices and younger drivers have had to pay the price.

As insurance costs have increased, it has become increasingly difficult for younger drivers to afford to pay for the insurance they require. However, drivers now have an option that provides them with the chance to push their insurance prices down. That option is black box insurance which is also known as telematics or even pay as you go insurance, effective, the price they pay is based around how they drive.

This is still a relatively new type of insurance but it could change the way in which younger drivers take control over how much they pay, just by driving responsibly.

How it all works

Essentially, the insurance company monitors the way in which younger drivers driver by detailing their driving habits using a black box that is fitted to the vehicle. This allows insurance companies to create premiums that are tailored to individual drivers based on the data associated with the way in which they drive. So, the safer they drive, the cheaper their insurance will be.

The black box works by monitoring a wide range of elements of driving such as acceleration and braking as well as the mileage they cover and when the car is used. All of this data is then used to work out how safe they have been driving and that will then be reflected in the premiums that they pay.

Drivers can check how they are driving by logging in online and viewing their statistics. Using this data, they can then identify where improvements can be made in order to bring their premiums down. To many, it might feel as though the black boxes are a little obtrusive but they are there to serve a purpose which is to help drivers keep their prices down while keeping them safe on the road.

Each month, the premiums can change based on how they have been driving and that gives younger drivers complete control over what they pay. However, it is still always worthwhile carrying out a comparison online in order to determine the cheapest available quote as it could mean that standard insurance comes in at a lower cost.

Are there any drawbacks?

While it puts the control in the hands of drivers, it can mean that their premiums go up because of their driving. So, if they are found to be driving in an unsafe way, it means that their premiums could be higher than that of conventional insurance.

What are other ways are there to cut your insurance?

If young drivers are not keen on having a black box installed then they can try to reduce their premiums in other ways. This can involve adding an experienced, older driver to the policy as a named driver, however, this should not be done as a way of fronting the policy in an attempt to reduce the cost of the premiums. Fronting involves someone registering themselves as the main driver when the reality is that a younger driver is using the policy and acting as the main driver of the vehicle. There are risks with this such as your insurance becoming void should you need to make a claim.

It is also possible to decrease insurance premiums by increasing the excess of your policy. This is the amount you pay towards a claim and that means that you have to ensure that you can cover these costs if you do make a claim.

So, a black box certainly serves a purpose for cautious younger drivers but for those who feel as though they might not benefit then it could be more beneficial to compare prices with other insurers.