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Traditionally, car insurance premiums have been based on your age, postcode, or location. This has led to unfairly high premiums for many people. There are various different schemes, which work to lower premiums, but blackbox technology has become one of the most popular and cost effective ways to save money on your car insurance.
A blackbox insurance policy allows drivers to pay premiums based on the merits of their driving, rather than just the arbitrary specifications defined by the insurer. In the past, these policies have been very popular with younger drivers, who are often victims of unfairly high premiums.
Research by Coverbox highlights that in the past two years, the number of people aged 50 and over who have purchased blackbox insurance has risen by 350 per cent. The appeal of lower premiums is one that now applies to all drivers – younger and older.
A blackbox monitors your driving habits and allows your insurer to notify you when your driving needs improvement. If you have a habit of speeding a little too much, or braking too hard, your insurer will let you know. As a result, the insurer is able to charge lower premiums, as they are able to tell if you are a good driver without having to rely on inconsistent data about drivers who are of a similar age or live in the same street as you.
Ultimately, Coverbox suggests that if you are paying over £650 a year on car insurance – you could be spending too much. A blackbox insurance policy not only lowers your costs initially, but it can continue to cut costs throughout your policy.
After a year of blackbox insurance coverage, your insurer can provide safer drivers with the lowest premiums possible on renewal. The premise is that good drivers should be rewarded, and shouldn’t need to pay the rising costs associated with less careful drivers.
The benefits don’t stop there as the blackbox can also act as a theft-tracking device in the event of your car being stolen, and prevent criminal networks from being able to commit car insurance fraud. For example, 'crash for cash' schemes cost the UK £340 million every year and blackbox insurance has effectively helped to identify criminals so that in the event of an incident, it is easy to establish if you are not at fault.
If you are looking to save money on your car insurance, blackbox insurance is certainly a viable and recommended option. There’s no point in paying premiums that have been decided without taking you into consideration, and blackbox insurance is a great way to take control of the price of your insurance.