- Motorists could save over £1.7 billion a year by switching to a black box car insurance policy, but only 5% of UK drivers currently have one
- The top barriers to installing a black box are concerns about an insurer tracking their movements (49%), loyalty to their current insurance provider (43%) and not wanting to pay to have a black box fitted (28%)
- Although over half (54%) of drivers recognise that they could save money by switching to a black box policy, 47% say they wouldn’t consider it
- Almost half of drivers don’t know that black box data can track your car if it’s stolen (46%)
- Young drivers are the trailblazers with almost a quarter (23%) already using black box technology
- uSwitch.com is calling on drivers to consider using new technology to help drive down the cost of their premiums.
British drivers could save up to £1.7 billion a year by switching to a telematics ‘black box’ insurance policy, according to new research from uSwitch.com, the price comparison and switching service. With the average car insurance policy now at an all-time high of £690 a year, careful drivers could save up to £145, and young drivers could save even more – up to £372 a year .
Car insurance premiums are currently increasing at five times the rate of inflation and savvy British motorists are always on the lookout for better deals, with 93% comparing car insurance policies before renewing or switching. Yet, despite over half of policy holders (54%) believing telematics options are cheaper, only 5% have taken out a black box policy.
A third (36%) of drivers who have switched to a black box policy found that the cost of their car insurance has decreased, with careful drivers able to save up to 21% by using a black box. But despite this, almost half (47%) of British motorists who don’t have a black box say they wouldn’t consider taking out a telematics policy.
The top barriers to switching are concerns about being tracked when driving (49%), loyalty to their current insurance provider (43%) and not wanting to pay to have a black box fitted (28%).
Indeed, the research shows that motorists who aren’t currently using a black box or telematics policy say they would have to save over £85 to consider installing a black box. However, with policy cost reductions of up to £145 possible with black box technology, many drivers seem unaware of the actual savings available to them.
As well as the potential savings on offer, UK motorists are also often overlooking the additional benefits of such policies. Almost half of UK drivers (46%) don’t know that black box data can track your car if it’s stolen, 48% aren’t aware that it can locate you if you are in an accident, and 38% don’t know that black box insurers offer rewards to good drivers. Astonishingly, over a quarter (27%) wrongly think that everyone who has a black box policy is subject to a curfew and can only drive at certain times.
Source: uSwitch.com research August 2017
Young drivers are the most likely to feel comfortable with black box insurance, with almost a quarter (23%) having already switched compared to only 2% of over 55s.
Rod Jones, insurance expert at uSwitch.com, says: “The savvy British public are always looking for ways to save a few extra pounds on their bills. This is especially in car insurance where costs have soared by a fifth in the last year.
“With savings of up to £145 on offer when installing a black box and the added benefits that this technology brings when it comes to safety and theft, we’re encouraging drivers to take time to research black box policies and see if the new technology could help drive down the cost of their policy. The money saved could instead be put towards essential car maintenance or paying off other household debts.”
Find out how you could save over £1,000 a year with uSwitch here.