Black box insurance which is also known as telematics car insurance is quite new and discussed in the UK. This policy includes monitoring driving style, records drivers’ on-road behaviour and then remunerates careful drivers with reduced premiums.
What Does The Policy Do?
This policy procedure involves fitting a black box into your vehicle which uses satellite technology to calculate car speed, speeding up, acceleration, put on the brakes, and the time of day time journeys are made. Some black box insurance policies also manage a clampdown with an increased premium charged if the car is used at some point in risky night hours. All the data that are collected in the black box are transmitted to the insurance company using the GPS technology, and then the insurance company would tell how a driver would make a claim.
Market Of Black Box Policy In The UK
Black box policy is not very regular policy that people go for in the UK. But it is increasing its market due to its safety control measures. An online platform used in this policy through the site “Driver IQ”, offer online tools that are designed to help the young and newbie drivers on the road to control their driving. The market analysts expect that in near future, probably by 2020 there will be one in four car insurance policies with the Black Box facility. On the other hand, the British Insurance Brokers’ Association (Biba) promotes that the sales of black box insurance policies have improved in the past two years by five-fold and are anticipated to reach 500,000 in the next two years.
Black Box Insurance For Young Drivers
These black box insurance policies are mostly helpful for the young drivers for whom it would be difficult to find out a less expensive and affordable car cover. And in some cases, young drivers even don’t get any cover which can also be viable with the black box insurance. This facility is available with the black box insurance as in this system the insurance company calculates policy costs and premium in proportion to the statistical risk of the driver. And most of the black box insurance policy providers estimate the young drivers are having too high a possibility of accident founded on the accident statistics. According to the Association of British Insurers’ record, drivers aged between 17 and 24 are three times more prone than other drivers to be in charge of Accidental Claims. And as the telematics insurance technology records the drivers on road behaviour, and driving ability thus a good driver may get decreased rate of premium to pay at the time of renewal of the policy. So, the final payable premium depends on the exact profile of the driver to some extent.
Others Who Get Benefitted
This policy is mostly helpful for the young drivers though it is a good option for occasional drivers who do not drive often. It is also good for those who rarely drive in the pick hours or/and in the night time, as these factors affect the premium rate go down noticeably.