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.”