Half of drivers expect to move to black box car insurance

More than half of motorists have said they expect to switch to a telematics car insurance policy in the next five years, research has revealed.

Research by Gocompare has revealed that 57% of UK drivers are open to the idea of a ‘black box’, and expect to be using one within five years.

A black box, or telematics, insurance policy sees a small box installed in a car, which measures driving habits – allowing insurance premiums to be set based on how an individual drives.

“Over the last few years we’ve seen car insurance premiums reach record highs,” said Scott Kelly, head of car insurance at Gocompare.

“The outlook for 2012 is little better with further increases expected, as well as a degree of uncertainty for young drivers once the European Court of Justice gender ruling takes effect; insurers will no-longer be able to take gender into account when calculating premiums.”

It was found that the vast majority of drivers think that their car insurance premiums should be based on the way they drive, while 97% think that careful drivers should be rewarded with cheaper insurance.

Telematics are currently aimed at younger drivers, who usually have very high premiums. Using telematics can save young drivers an average of £521.

“Most insurers currently price their policies based on a series of generalisations around claims experience, location, age, sex and the type of car,” added Mr Kelly.

“Most don’t consider an individual’s actual driving habits until they have built up a record of safe, claim-free or incident-free driving over a number of years and have subsequently earned a no-claims discount.”

You can compare car insurance with Propertywide.

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Posted by: WarrenWilson Categories: Finance Tags: 3 Comments

3 Responses to Half of drivers expect to move to black box car insurance

  1. avatar kendafish says:

    The problem for careful drivers is that you cannot legislate for other drivers who hit you. Once this happens, it goes down as an accident against you even if it is a No Fault Claim and settled by the other person’s insurance. It will still increase your premium next year based on the fact that you were involved and therefore are more likely to be involved in another accident which may or may not be your fault. I say this is unfair and discriminates against careful drivers. Insurance companies just use it to make more money.

  2. avatar John says:

    This idea of safe drivers wont take into account the many really slow and un-confident drivers out there that accelerate really slowly, never pull out at junctions, etc, but will be perceived as ‘safe drivers’ whilst all around them are getting frustrated and driving erratically to get past them. Also they may never get above 50 on the motorways and be seen as safe, whilst lorries overtake them at 55mph and the mile or two of traffic behind get fed up then speed up to get past to make up the time they’ve lost.

  3. avatar Pianist says:

    Just a thought – surely with the quantity of traffic on our roads today, you should allow extra time for any journey – speed is not always the requirement – patience is. Although saying that – I still believe that there should be a minimum speed on motorways – if you wish to go slow, use the A and B roads?