Telematics installed
An engineer may do this, you may plug it in yourself, or you may just download a smartphone app.
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. This includes speed, braking, acceleration and time of day.
If you 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.
How does black box insurance work?
Insurers use data on your driving habits - like mileage or cornering - to calculate your risk.
Lower risk means cheaper premiums.
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Data collected
The way you drive is monitored by your telematics device, and the data is fed back to your insurer.
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Premiums adjusted
Different insurers will have different timeframes for adjusting your policy. Often, it's at your renewal.
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.
What types of telematics insurance can I get?
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Black box
An engineer installs this type of device into your car, usually behind the dashboard.
Best for: Drivers who won't switch their policy or car soon, or who don't drive with a phone.
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Plug-in device
You install this type of device yourself. It goes in the USB slot or cigarette lighter.
Best for: Drivers who want a quick set-up and won't use telematics long-term.
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Smartphone app
You download an app to your smartphone, and use it while driving.
Best for: Tech-savvy drivers who want to monitor their driving habits in real time.
Do I need telematics if I'm a new driver?
🚩 It is illegal to drive without at least third-party car insurance
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): £1488.29
Telematics insurance (average): £1230.77
Why is car insurance so expensive for new drivers?
New drivers are seen as higher risk by insurers. The more likely insurers think you are to make a claim, the more they will charge you to cover that risk.
New drivers are inexperienced by definition. That makes them statistically more likely to have an accident. There has also been research that shows young drivers, who make up a large part of the new driver group, are statistically more likely to take risks like dangerous overtaking or speeding.
When would telematics not benefit a new driver?
Black box insurance is unlikely to save you money if you have higher-risk driving habits:
You are prone to rapid acceleration, harsh braking, sharp cornering, speeding etc.
You frequently drive at night
You drive a lot (telematics insurers penalise high mileage)
What are the pros and cons of telematics insurance?
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Pros
Earn insurance discounts
May improve your driving skills
Provides reassurance for parents
Telematics data can be used as evidence to settle claims
GPS function can deter car thieves
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Cons
Premiums can increase if you drive in riskier ways
Insurers may restrict where and when you drive
Other people driving your car may affect your score
May be additional installation or dismantling fees
You may lose your discounts if you switch insurer
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
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
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
Third-party, fire and theft car insurance:
✔ Covers other people and their cars
✔ Covers fire damage and theft of your car
Third-party only
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
£1230
.77^
Third-party, fire and theft
£1443
.02^
Third-party only
£1334^
What add-ons can I get with my car insurance?
🚩 Not all add-ons will be available for all telematics policies. Check with your insurer.
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Breakdown cover
In case your car has a mechanical problem while you're driving it.
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Courtesy car cover
In case your car is unusable but you still need to drive.
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Windscreen cover
In case your windscreen is chipped, cracked or broken.
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Car keys cover
In case you lose or damage your car keys and need replacements.
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Wrong fuel cover
In case you put diesel in your petrol car, or vice versus.
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Legal cover
In case you are taken to court for your role in a car accident.
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Personal accident cover
In case you or your passengers are hurt or killed in a crash you caused.
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Personal belongings
In case your stuff is stolen from your car, or damaged while in the car.
Compare telematics policies from top insurers:
Seeing several options and prices makes it easier to find the best deal for you.
An example quote from the past two days
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Geoffrey
Great for
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Windscreen cover: comes as standard
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Personal injury cover: comes as standard
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Courtesy car: comes as standard
But be aware that
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Breakdown cover: available from £29.99
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Legal cover: available from £30.00
Our expert says…
80% of car users think that they are better-than-average drivers, according to research from the Open University.
Unfortunately for drivers who have an accurate assessment of their abilities, car insurers usually charge based on broad generalities, including the risk profile of the demographic group people fall into.
Telematics policies are the exception to this rule. For safe drivers who happen to belong to a high-risk group like new or young drivers, it can be a good deal. That's why 61% of drivers aged 18-24 are now considering it, according to data from The Green Insurer.
Beth Leslie Senior Insurance Content Editor
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MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Try using our car insurance tools
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Looking for a different type of car insurance?
Do I have to wait for my black box to be installed before I can drive my car?
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.
Can I see my black box data?
Yes. Your insurance provider will usually have an online portal or app which you can log into to see a dashboard with your driving information and how it is being 'scored'.
You will generally be able to see your journey history, speed patterns, and a breakdown of how your score is being calculated.
Can my premiums increase with a telematics policy if I drive poorly?
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.
Can someone else drive my car if I have telematics insurance?
Yes, if they're insured to drive your car. Usually, this means you'll need to add them as a named driver on your policy.
Since telematics can't tell who is in the driver seat, anyone who drives your car could affect your driving score, and therefore your premiums.
Can I turn off my telematics?
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.
What happens if I go over my estimated mileage with a black box?
If you exceed your estimated mileage, you could be charged extra by your insurer.
Your telematics policy may adjust your fees automatically. Otherwise, you can call your insurance provider to add extra miles to your policy.
What happens if I have a car accident with my black box?
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.
What if my car with a black box is stolen?
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.
What if I buy a new car and I already have black box car insurance?
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.
Can I cancel my telematics insurance policy?
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.
Am I covered by telematics insurance if I’m abroad?
It depends on your insurer. Some will cover driving in certain other countries as standard, or you may be able to add this cover to your policy for a fee.
What is the process of fitting a black box?
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
Do I have to pay a fee to install or remove my black box?
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.
How soon will I see savings from a telematics policy?
It depends on your insurer.
Some will offer a discount upfront when you take out a black box policy. But it is more common for insurers to monitor your driving habits for a period of time, or number of miles, before offering low-risk drivers a discount. This timeframe is generally between 3 and 12 months.
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Is multi-car insurance eligible for SuperSaveClub and rewards?
No, at this time multi-car insurance is not an eligible product for unlocking our SuperSaveClub rewards. It is also not included in our Price Promise.
Reviewed on 19 Dec 2025 by
SuperSaveClub restrictions and T&Cs apply. Click here for details.
Based on the median annual price of comprehensive policies sold through MoneySuperMarket in October 2025.
Based on the median annual price of comprehensive policies sold through MoneySuperMarket in October 2025.
Based on the median annual price of comprehensive car insurance policies sold through MoneySuperMarket in October 2025.
Based on the median annual price of third party only policies sold through MoneySuperMarket in October 2025.
Based on the median annual price of third party, fire & theft policies sold through MoneySuperMarket in October 2025.