BLACK box car insurance premiums could save motorists hundreds of pounds, new research has revealed with up to three out of four drivers being able to save a considerable amount of the cost of their car insurance by switching to telematics
New research has revealed that three out of four drivers could save up to hundreds of pounds off the cost of their car insurance by switching to a black box premium.
While premium costs are decreasing in the UK, many motorists are still being stung by hefty renewal costs.
Data from Confused.com’s annual Car Insurance Price Index, which surveyed more than six million quotes, found that of drivers who remained with the same insurer, 58 per cent saw their premiums rise by an average of £49 last year.
New data from Coverbox does, however, suggests that 74 percent of renewal quotes with black box premiums were cheaper than the current non-telematics policy.
Just under a third of these drivers managed to land saving of £250.
Telematics premium hosers are rewarded for being a good driver by cheaper premiums and on average drivers could save sound £200, claim the car insurer.
Typically, there is a notion that only doing drivers can expect to save money off their car insurance with a black box or telematics premium.
It is common knowledge that young drivers could make big savings by taking one of these policies but it is relatively unknown what other groups could make savings.
Here are what groups could save cash:
Over 50s drivers
Drivers in this age bracket taking out telematics policies has increased by 300 per cent over the past three years.
Nearly one in three (29 percent) of drivers over 50 saved £350 or more upon renewal of their policies.
There has seen more than a 100 percent increase in drivers being insured on the same policy as a spouse in the last 3 years.
Married drivers are statistically safer on the roads, and can make big savings with black boxes.
In addition to the number of shared policies more than doubling, the proportion of telematics drivers who are married has increased by 69 percent.
Although European legislation prevents policy pricing based on gender, statistically women are 37 percent less likely to be involved in an accident and this safer driving translates to lower premiums.
As the overall proportion of female drivers increase, women are saving a huge amount on their total car insurance expenditure with telematics.
Previously married drivers
The proportion of divorced and widowed drivers with black boxes has more than tripled in the last three years as previously married drivers switch to telematics to save money on their car insurance.
Married couples are often on the same policy and the unnamed driver may lose their no claims discount when their circumstances change, which can cause premiums to skyrocket.
Drivers in difficult postcodes
Many insurance policies hike up prices in certain areas deemed to be at higher risk of being claim hotspots.
Drivers in Birmingham are leading the way, with a rate of telematics use 76 percent greater than the UK average.
Drivers with convictions for past driving offences
Blackbox policies can help previously convicted drivers to reform their driving styles, and help them significantly reduce the cost of their premiums if they prove they are safe on the roads.
Around 44 percent of policyholders convicted of drink driving who then took out black box policies saved nearly 50 percent on their premiums at renewal.