Black box vehicle insurance represents a flexible way to lower your insurance premiums by increasing the means by which an insurer can track your driving. A tracking device is installed in your car, which records your driving habits, and relays it to an online server where it can be used to develop mileage and trends. Also known as telematics insurance, black box vehicle insurance can be of particular value to younger drivers, and has several key benefits that can be explored in more depth below, and include everything from specificity through to flexibility.
Black box insurance looks to measure the amount of miles you drive, and can work out to lower premiums on a pay as you go basis. The information accessed by the insurance company determines how they shape a policy, with competitive policies and premiums for different mileage and average car usage. Younger drivers that may have difficulty receiving favourable premiums elsewhere can use black box insurance to prove that they are safer drivers. A black box, which is about smartphone sized, and designed to be as discreet as possible, can also provide information on where a car is located, how frequently the driver brakes, and what happens in an accident. Data such as speed before impact can help to create a more detailed record of incidents, and can be used to improve the chances of a successful claim.
Another key benefit of black box insurance is that it gives drivers a significant amount of flexibility over how they control their driving. Those who only use their cars a few times a week can reduce their premiums, while setting up habits where they avoid peak hours and traffic. Sensible driving habits, properly monitored and recorded, can also provide an individual account of someone’s driving performance. This individual data is important, given the recent EU rule change on not discriminating on insurance policies based on gender. Moreover, the data that a black box records will not necessarily be impacted by whether more than one person drives a car, but will go on the overall driving performance over a certain amount of time.
Some extra advantages of black box car insurance is that the tracking device enables stolen cars to be retrieved. It’s important, though, to notify an insurance company as soon as possible if a car has been stolen to avoid racking up a costly mileage level. Having your insurance information recorded online similarly means that it is possible to stay on top of insurance payments and due dates. Insurers offering black box insurance regularly offer cash back schemes as premiums, as well as the opportunity to improve future policy prospects through a safe driving records. Parents that want to check on their children’s driving habits can also do so online.
There are a few disadvantages that should be taken into consideration, however. A black box insurance policies does restrict how much you drive if you want to avoid higher premiums compared to a fixed price. You may find that your driving habits suddenly change as the result of a new job, making it impractical to continue with a scheme. Other drivers might also have doubts over their details being shared. In general, though, black box insurance can save drivers that want a more tailored insurance package.
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