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How a Little Black Box Can Help Get Cheap Insurance for Young Drivers

By Edited May 13, 2015 0 0

Making Insurance For Young Drivers More Affordable

Everyday, new drivers excitedly take to the roads for their first driving experience. While learning to drive can be considered a rite of passage, car insurance rates can make the experience more stressful. Fortunately, with the use of this device, it may be possible to get cheaper insurance.

Why Does Car Insurance Cost So Much?

It is believed that 1 in 5 young drivers have an accident within their first 12 months of driving due to general inexperience (or recklessness). Since the likelihood of becoming involved in an accident is so high, car insurance companies see youths as a liability. To make up for the risk involved, many insurance companies charge them much higher premiums until they are of age (typically 25).

What Is a Black Box and How Does It Work?

This device makes use of telematics technology to monitor a driver's driving habits. It is typically installed in the dashboard of a vehicle, and is able to record braking, acceleration, cornering, and overall speed. Additionally, it will record what times of the day a driver uses the vehicle and also uses GPS to determine distances travelled.

With the information handy, an insurance company can determine whether or not a person is acting responsibly while on the roads. If they practice good driving habits, they can take advantage of lower insurance rates. In fact, there is potential save up to 30% on policies if they drive safely. However, if drivers practice bad habits, they may experience increased premiums or policy cancellations.

What Are the Names of Some Companies That Use Black Box Technology?

* The Co-operative
* AA
* Ingenie Insurance
* Hastings Direct
* InsureTheBox Limited
* Coverbox
* Ikube

When deciding what company to choose, there are a number of factors you need to take into consideration, including:

* Rates
* Payment schemes
* Coverage options
* Minimum age requirements
* Available discounts
* Maximum no claims
* Additional excess
* Customer service

What Do People Think of Black Boxes?

Although it is believed that black boxes will soon be required to get insurance for young drivers, there is much controversy about it. For example, there are groups that believe their use can lead to data incriminating drivers and invasion of privacy. With the GPS recording where they take their vehicles, there are many that feel uncomfortable about such data being constantly recorded.

Yet, having them in vehicles has been proven to reduce reckless driving. In fact, in Italy, the accident rates have decreased by 16% through their use. While there are many more black boxes installed in Italy than the U.K., it is expected that nearly 500,000 cars in the U.K. will be equipped by July, 2014.

While some younger people are wary about the black boxes being installed, others are eager to have the chance to save money and learn how to become safer drivers. Although young drivers tend to be very aware of the black boxes for the first month or so, they soon forget about them as safe driving becomes second nature. By checking into their accounts, users can also see how well they drive and where they need to improve.

What Are Other Ways That Companies Try to Encourage Young Drivers to Be Safer?

In addition to black boxes, some companies also use mobile apps to try and encourage young drivers to practice safer driving habits. Other devices that are being used include in-car alcohol breathalyzers and master keys that limit a vehicle's maximum speed and more.

Companies also encourage younger people to be safer by offering discounts if they complete driving courses. Pass Plus and Any Driver BTEC courses are excellent for beginners, and can help save money on car insurance policies.

There are many ways to get cheap insurance for young drivers. With the use of various safety devices, such as black boxes, young drivers will not only save money but lives as well.

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