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BLACK BOX / TELEMATICS INSURANCE

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What is black box insurance?

Black box car insurance, also called telematics insurance, is a type of policy that involves having a device in your vehicle that allows your insurer to monitor your driving habits.

If you drive well and have low-risk driving behaviours your insurer will offer you lower premiums when you renew.

Telematics insurance is particularly valuable for drivers who personally drive in a low-risk way but belong to demographic groups insurers consider higher-risk. This includes young people, new drivers and drivers with criminal records.

Do I need it if I'm a new driver?

🚩 It is illegal to drive without at least third-party car insurance in the UK

There is no requirement to take out a black box policy if you’re a new driver. However, it is one of the ways you can reduce your insurance costs, which are almost always significantly higher than costs for older and more experienced drivers.

New drivers insurance (average): £1533.18[2]

Telematics insurance (average): £1220.75[2]

How does black box insurance work?

  • icon of box with signal

    Telematics installed

    An engineer may do this, you may plug it in yourself, or you may just download a smartphone app.

  • icon of form

    Data collected

    The way you drive is monitored by your telematics device, and the data is fed back to your insurer.

  • coin icon

    Premiums adjusted

    Different insurers will have different timeframes for adjusting your policy. Often, it's at your renewal.

What types of telematics insurance can I get?

  • 1

    Black box

    An engineer installs this type of device into your car, usually behind the dashboard.

  • 2

    Plug-in device

    You install this type of device yourself. It goes in the USB slot or cigarette lighter.

  • 3

    Smartphone app

    You download an app to your smartphone, and use it while driving.

What driving habits does a black box track?

The time of day you drive

Locations you drive in

Types of road you drive on

Sudden impacts on the vehicle

How fast you accelerate

How you brake the car

How you take corners

How often you drive

How much you drive

💡 Top tip: Telematics data isn't just looking at whether you're a good driver. It also scores you on lower-risk driving habits such as only driving during the day.

Purple car

What level of cover do I need?

As with standard car insurance, there are three levels of telematics insurance cover: fully comprehensive, third party fire and theft, and third party only.

💡 Top tip: Fully comprehensive cover is usually cheaper than the other types of insurance, even though it covers more.

Fully comprehensive car insurance:

✔ Covers you and your car

✔ Covers fire damage and theft of your car

✔ Covers other people and their cars

Third-party, fire and theft car insurance:

✔ Covers other people and their cars

✔ Covers fire damage and theft of your car

Third-party only car insurance:

✔ Covers other people and their cars

How much does telematics insurance cost?

These are the average annual prices of telematics policies sold through MoneySuperMarket.

Fully comprehensive
£1220
.75[2]
Third-party, fire and theft
£1501
.30[3]
Third-party only
£1112
.50[4]

Compare black box insurance from:

AdmiralOne Call Insurance02autosaintbellcarrotcoop

Is it worth getting a black box?

Telematics insurance is not guaranteed to make your insurance cheaper.

It is likely to save the most money for:

good drivers

with low-risk driving habits

who are also members of groups insurers consider high-risk:

✔ young drivers

✔ older drivers (70+)

✔ new drivers

✔ drivers with criminal records

✔ drivers who have recently claimed on their insurance

Telematics / Black Box

£1,220.75 [2]

New Drivers

£1,533.18 [2]

Young drivers (17-19)

£1,458.96 [5]

The chart shows the median costs of various fully comprehensive car insurance policies purchased through MoneySuperMarket.

What are the pros and cons of telematics insurance?

  • Tick

    Earn insurance discounts

  • Cross

    Premiums can increase if you drive in riskier ways

  • Tick

    May improve your driving skills

  • Cross

    Insurers may restrict where and when you drive

  • Tick

    Reassurance for parents

  • Cross

    Other people driving your car may affect your score

  • Tick

    Data can be used as evidence to settle claims

  • Cross

    May be additional installation or dismantling fees

  • Tick

    GPS function can deter car thieves

  • Cross

    You may lose your discounts if you switch insurer

It depends which type of telematics policy you take out:

  • Some black boxes require professional installation by an engineer. Your insure will normally arrange this for you at a time of your convenience

  • Some black boxes you can easily install yourself by plugging them into your car via its USB port or cigarette lighter

  • Some telematics policies use a smartphone app which you'd need to download onto your phone

Yes. Black box insurance policies are designed to reward lower-risk driving habits. If the data from your device suggests you are a higher-risk driver your insurer will consider you more likely to make a claim and may respond by increasing your insurance premiums.

Higher-risk driving isn't just about having bad driving skills. If you often drive at night or on more dangerous roads insurers will consider you more likely to claim from them, even if your actual driving is very good.

However, as your telematics data will not be shared outside of your specific insurer, if black box insurance is increasing your premiums you always have the option to switch to a non-telematics policy.

It depends on your insurer and policy type. But as a general rule of thumb:

  • You will not be charged anything extra for black box installation

  • You will be charged around £50-£100 for removal if you have the type of black box that needs to be uninstalled by an engineer

Some insurers will also charge no-show fee if you miss a scheduled installation appointment.

No. Turning off or tampering with a black box while your telematics policy is active can invalidate your insurance.

However, you can cancel your telematics policy at any time. As with all car insurance policies, you may be charged some fees for doing this, especially if you've had the policy in place for more than two weeks.

To get the best results from black box insurance, you need to drive in ways that are considered low-risk by insurers. These include:

  • Not exceeding speed limits

  • Braking in plenty of time

  • Not accelerating quickly

  • Not driving late at night

  • Staying within a set mileage limit

Frequently Asked Questions

Our expert says…

Telematics insurance can be brilliant at bringing down insurance costs for careful motorists, especially brand-new drivers faced with eye-watering premiums. However, some policies penalise or prohibit driving at night, and push up the price if you drive more than the expected mileage, so black box cover won’t suit everyone.

Faith Archer Personal Finance Expert

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No, you'll be insured to drive your vehicle as soon as your policy starts, even if you haven't had your black box installed yet.

Yes. Your insurance provider will usually have an online dashboard through their online portal or app, where you can log in to see a dashboard with your driving score.

If someone else is driving your car, or you’re driving someone else’s, the driver must have an adequate level of car insurance in place – whether it’s their own policy or as a named driver. Anyone else who drives your car will affect your driver score.

If you exceed your mileage allocation, extra milage costs will be added to your premium.

You can usually call your insurance provider and add extra miles to your policy and pay the additional costs added to your premium after those changes have been made.

Depending on the provider and type of telematics device you have, it may be able to detect if you’re involved in a road accident – usually by measuring force of impact. The device can send your location to the emergency services, and the data provided may even be able to help insurers determine what caused the accident and whether you were at fault.

The black box uses GPS to track your car’s movement. If your car is stolen, your insurer may be able to help the police locate it, provided the black box is still active and hasn’t been removed from the vehicle. You will need to report your car as stolen to the police and give the crime reference number to your insurer.

If you have a plug-and-drive device or you use an app, changing car shouldn’t be a hassle, but if you have a black box installed it’s somewhat trickier. Your insurer will arrange the installation of a new box in your new car and the old box will be deactivated.

Some insurance providers may fit a new black box for free, while others may charge up to £150 for the service.

You can cancel your telematics insurance at any time. However, you may have to pay a cancellation fee if you cancel before the policy term is finished. Once you've cancelled, your insurer will deactivate your monitoring device.

If you have a black box you can choose whether you want it removed or not, though this may cost up to £150.

If you’re driving abroad you should still be covered by your policy, though you’ll need to check with your insurer whether your driving is still assessed.

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