Could A Black Box Save You Hundreds?

Thu 18th Feb 2021

The installation of a telematics system may be seen as the ultimate in big brother surveillance, but new research has shown the devices could save young drivers hundreds of pounds on their insurance.

The technology, which can monitor a driver’s speed and maneuvers, are not the most fashionable add-on that new drivers will be looking to buy when they finally pass their test, but data from Compare The Market has found that the majority of young drivers will save an average of £848 on their motor insurance by having telematics installed.

The research revealed that 54 per cent of 17 to 24 year olds would cut costs by moving policy and that a huge 67 per cent of quotes for drivers aged 17 to 20 were more affordable.

Whilst telematics are now becoming more of an acceptable option for drivers, the option of making big savings on your policy has decreased year-on-year. 74 per cent of premiums were cheaper in 2019, compared to 67 per cent in 2020, the same research also shows that telematics premiums are less likely to be cheaper the older the driver.

“While the average cost of car insurance has fallen as a result of the pandemic, our research shows the cost of telematics premiums has declined at a much slower pace,” said Dan Hutson from Compare the Market.

“This means that these policies are less likely to be the cheaper option for drivers compared to previous years.

“However, this shouldn't deter younger drivers from considering these policies. Telematics premiums are usually aimed at young people and students which is why the policies can be cheaper for what is considered a higher risk age group.

“The idea is to encourage safe driving, which could also help younger drivers get more affordable car insurance. Telematics can also provide the same benefits to other motorists who might be classed as high risk, including elderly drivers or drivers with convictions.”