Black boxes under bonnets lead to discount car insurance

Telematics is paying off, according to some car insurance companies, who say that slinging black boxes under car bonnets is the best way to get discount car insurance in the current economic climate.

Motor car insurance provider and telematics specialist Insurethebox says that two out of every three of their customers have seen as much as £800 less in renewal quote prices, even though the rest of the industry has undergone heart-stopping rate hikes over the past year.  Insurethebox said that, while drivers who were less than careful on the road saw their premiums go up, the average savings during July and August renewals was 22 per cent of the previous year’s premium prices.

Mike Brockman, chief executive for the insurer, said that good motorists subsidise less responsible users of the road when everyone receives the identical favourable renewal terms.  As long as car owners buy into Insurethebox’s approach, the insurer is empowering them to control their own motoring costs, added Mr Brockman.

However, some motorists may find the terms of the car cover an ill fit.  While Insurethebox allows you to top-up your 6,000 mile a year limit if you exceed it, drivers with heavy feet on the accelerator and brake pedals at traffic lights and roundabouts will be in for a shock when the black box keeping track of your motoring habits transmits those interesting tidbits back to your insurer.

While Big Brother is indeed watching, it’s not all bad news.  If you drive responsibly and avoid peak driving times, such as commuting hours, the clever little system will report that as well.  Safe, responsible (and possibly quite a bit boring) motoring turns out to be its own reward, and with premiums prices continuing to climb, it could make motoring much more accessible for those who might otherwise needed to have taken their cars off the road.

Or deeply boring driving, depending on your point of view. Thankfully it can’t tell the insurer (yet) how often you break wind or pick your nose. But such savings must look increasingly attractive to many, especially young drivers, many who are being driven off the road due to sky-high premiums.

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