For UK drivers, black box car insurance offers a cost-effective alternative. From lowering your premiums to improving your driving skills, there are many benefits.

Running a car can be expensive even with bad credit car finance. Car insurance premiums can quickly raise the costs too, especially for young and new drivers, so this form of insurance can help to protect budgets.

There are drawbacks to black box car insurance too such as data not being released by insurance companies to drivers. In this article, we look at some of the pros and cons of black box car insurance.


Improving your driving skills

Detailed driving reports are one of the key features of black box insurance. These reports can suggest ways to improve your driving skills.

Lowers your premiums

Becoming a better driver will lower your premiums. The more information a car insurance company can get about how good your driving is, the lower your premiums will go.

Deters car thefts

Black boxes will help locate your car easier and track its movements. This can act as a deterrent to car thefts, as it will be easy to track where a stolen vehicle has been taken.

Easier claim settlement

Black boxes record information about accidents. Therefore, it makes it easier for insurance companies to determine fault in an accident and settle on claims.

Regular driving feedback

Regular driving feedback is great for parents who are insuring their child’s first car. They offer insight into how safe a driver is and can help parents educate young drivers on road safety.


Restrictions on journeys

Some black box car insurance policies impose curfews and journey restrictions on the user. Some even charge fines or higher premiums when they are used outside of designated times.

Data privacy issues

Data leaks can be dangerous. As a black box is essentially a data sharing device, there could be issues around data privacy and potential mishandling of data.

Other named drivers

If there are other named drivers on your black box car insurance policy, their driving skills could affect your policy premiums. Only add named drivers whose driving you completely trust.

Higher premiums for reckless driving

With a black box policy, the insurance company will be able to assess your driving more easily. Dangerous driving will result in higher premiums.

Black box policies could be a great option for you, but be sure to understand your policy details before you take it out.