When it comes to car insurance, the telematics black box is considered a bit of a last resort for many young drivers. They’re popular, though, given the cost savings that can be made.
Should we all have black boxes in our cars, then? That’s what new research by MoneySuperMarket has looked into, and the results are curious. It seems black boxes aren’t a universal friend of insurance premiums.
If you’re under 30, black boxes do usually lower insurance costs. For those aged 17-19 and 20-24, the effect is substantial: a respective 41 and 28 percent saving on the average premium cost.
That means the youngest drivers can save just under £800 on their typical premium of £2,079. For 20-24 year-olds, a black box could get their premium down below £1,000, from £1,380 to begin with.
For 25-29 year-olds, the returns diminish. A mere 2.4 percent can be saved on average if you’re in this age bracket. That represents a measly £20.
Black boxes that make insurance costlier
Things take a dramatic nose dive with older drivers. Among 30-39 year-olds, premiums increase by 22 percent – from £590, on average, to more than £700.
It gets so much worse, too. Premiums for those aged 40-49 jump 46 percent with telematics, from £435 to £634. If you’re 50 or older, don’t even think about it: a black box could add a massive 71 percent, or 77 percent if you’re over 65.
No surprise, then, that it’s ‘starter’ cars black boxes are fitted to the most – Vauxhall Corsas (12 percent of black boxes) and Ford Fiestas (nine percent).
“If you’re under the age of 24, our research reveals that telematics could be a good option, with potential savings of up to £855,” said Rachel Wait, consumer affairs spokesperson at MoneySuperMarket.
“If you’re an older driver, however, a telematics policy may not be the most cost-efficient way to take out a car insurance policy, which is why shopping around is so important.”