As mentioned earlier black box insurance is designed to encourage good driving and penalise bad driving. With fines for bad driving long journeys or breaking curfews you may find telematics car insurance actually more expensive than alternatives.
A black box policy focuses more on how you drive now so it might be a cheaper alternative.
Disadvantages of black box car insurance. If someone nicks your car a black box can help track it down. Black box insurance also has a few potential disadvantages. This can be a deterrent to would-be thieves and a useful aid to recovering your vehicle if its stolen.
However as any learner driver will know there are plenty of grey areas. If your driving is erratic or you are persistently exceeding speed limits it will certainly have an effect on the price of your car insurance. This has led to some concerns about the security of your data.
Black box insurance disadvantages A motorist that drives frequently covering many miles or that frequently drives during rush hour or at night may not benefit from black box car insurance. Driving on roads known to be accident black spots will increase your premiums with some providers. Black box insurance adds a little more security as the GPS tracking system can be used if your car has been stolen.
There are several driving practices that a black box will discourage and if your black box says that you have a low score you. The GPS box is usually hidden behind the dashboard or battery and can be tricky to locate so it cant be stolen. You must pay for the black box fitted in the car and also payment is necessary to get it removed.
This can increase the speed and accuracy with which car insurance claims are managed. The black box in the car includes a huge amount of information which can be very useful in the case of a car accident. Many insurance companies will penalise you for driving late at night or outside of certain hours.
Police can work with your insurance company to recover your car based on your black box GPS location. Unlike fleet telematics insurance policies telematics car insurance aimed at individual customers wont usually be able to tell who is driving the insured vehicle. Possibility of increasing premiums If unsafe driving is frequently detected by the device the insurance provider reserves the right to increase premiums on renewal or terminate the policy.
This can be a deterrent to would-be thieves and a useful aid to recovering your vehicle if its stolen. More profitable for insurance companies. They may in fact pay even more than a traditional insurance policy such as third party third party fire and theft or comprehensive car insurance.
What are the disadvantages of telematics insurance. Paying monthly is an advantage for many especially if you find your insurance cost is lowered due to your black box insurance. Black box insurance uses GPS technology to determine a vehicles location at all times.
Finding a stolen car. Though Black Box Car Insurance is an easy way to save good amount money there may be many disadvantages of the black box. Black box car insurance is a great way of reducing costs however there are circumstances which can cause it to be more expensive than standard insurance.
Some policies dont allow driving late at night and in the early hours of the morning because these are times when crashes are more likely. If you think your cars safety and theft. Black box insurance can impose restrictions on journey numbers and lengths.
Can be more expensive. One of the downfalls of black box insurance is that sharing a car becomes harder as the box does not discriminate between drivers and one persons poorer driving can become a. Prove your innocence in an accident.
You may have to pay for the black box to be fitted andor removed. In order for black box insurance to work your insurance company constantly tracks your behaviour behind the wheel to see how you drive. For example it can show whether the driver was speeding or driving dangerously prior to the accident.
Curfews are the single biggest complaint about black boxes. Few of them are discussed below. Having your every movement tracked logged and reviewed has some obvious privacy implications.
But it can result in restrictive policies which may not suit your particular circumstances. One of the big disadvantages of car insurance is that pay monthly plans have a higher interest rate than if you pay upfront for the year so if you save with a black box and pay monthly it can be a huge advantage. This is because accidents are generally more likely to occur at night so youre viewed as a higher risk if you drive at night.
Disadvantages of black box insurance Bad driving can mean you pay more. Black box insurance uses GPS technology to determine a vehicles location at all times. Further Reading Whole Life Insurance Pros and Cons.
This is because statistically the more and longer you drive the more likely you are to have an accident. However data protection laws mean that your driving data is protected. Cons of Black Box Car Insurance.
Similarly where you work or live can affect premiums.