Whereas many drivers consider black box insurance policies a thing of the past, they are still very much around today and in some cases, are more popular than ever.
Data from the Consumer Intelligence price index tells us that the average motor premium in the UK is now £751, with one in four cheapest insurance quotes now provided by black box policies for under-25s.
Likewise, many businesses with fleet vehicles and commercial drivers also opt for black box policies, to encourage a safe driving ethos throughout their entire supply chain.
But even today, there plenty of questions surrounding the infamous device – lets look at the top 5 most asked.
1. Are black box insurance policies the same as telematics?
Pretty much, yes. Black box policies are perfect for anyone who wants to take control of their insurance costs, including those driving for personal use, and for business too.
They work by ‘tracking’ driving styles and behaviours, which effectively means that if someone always drives safely with no erratic behaviour (such as harsh braking, speeding or cornering) then this would result in a lower insurance premium, as the risk for claims would be considered lower. Just remember that this works the other way round too – if a driver is prone to dangerous manoeuvres, the black box would recognise this each time and ultimately warn the insurer that there’s a higher claims risk. I.e., higher premiums.
2. Who is best suited for black box insurance?
Black boxes aren’t for everyone. Some drivers hate the idea of being tracked on the road as it reminds them of Big Brother always recording them, but for others, having that little box fitted to the car is the answer to lowering their premiums and proving their driving is as good as they say it is.
These groups include young and inexperienced drivers who may have only recently passed their driving test, less frequent drivers with a low annual mileage and older drivers.
To brokers, these groups are deemed as “high risk”, but an ethical insurance provider would not assume they’re dangerous drivers; instead, they would use the data available from the black box device itself, to tailor an insurance policy or claim to reflect each individual driver.
3. Does this mean all black box insurance quotes are different?
Instead of paying for insurance based on the average driver, black box insurance premiums are based on when and how an individual person is behind the wheel, such as when or how often they use their vehicle. This makes their quotes much fairer, and yes, tailored to how safe each driver is.
For example, insurers know that typically, serious and fatal accidents often happen late at night or early in the morning. If a driver could confidently say they never drive during these times, then this could be factored into a policy to help to lower premiums, though you could end up facing a penalty if you do drive during those times.
4. Do black box policies come with any benefits?
Black box policies often come with other benefits like free anti-theft tracking and personalised online driving records. Whilst this is ideal for younger drivers who want to keep on top of what they’ve learned, it’s also a brilliant tool for businesses with fleet vehicles.
This telematics data can be used to build specific driver training programmes to their staff. From rewarding those who drive the safest overall, those who make the most improvements in driving style, and onboarding new drivers to the business as well, creating a firm driver safety culture from the get-go.
What’s more, having a box is a lot more likely to encourage drivers to be more careful on the road, as they know their actions are being monitored. This can go a long way in helping businesses and individuals alike, manage their insurance costs.
5. Can black box data be used to support an insurance claim?
Absolutely. In the event of a claim, the black box helps insurers settle the claim quickly and establish the facts about what happened.
As vehicle movements are recorded in the device, this data can be used by an insurer to determine if you were not at fault. However, whilst the black box will support your claim substantially, it’s always a good idea to gather as much information as possible yourself when submitting a claim. This means the time of incident, weather and traffic conditions, photographs of the cars and where possible, witness statements.
All this data collectively will help make the claims management process more efficient and quicker to settle.
Black boxes and ethical insurance claims handling
At ECSG, we are specialists in technical claims handling. Our dedication to deliver bespoke claims solutions is born of the belief that, through collaboration and honesty, everyone, regardless of fault, should have access to market leading services and be treated fairly and respectfully.
Insurers, MGA’s and brokers alike choose us to support them with service fulfilment and supply chain execution, trusting that we will improve their claims spend and experience. And by working hand in hand with underwriters, we’re able to ensure that only completely valid claims are paid.
In fact, we’re experts in identifying issues with policy coverage and understanding policy mechanisms. No stone is left unturned; we’re here for our clients, no matter the claim or the fault.
To find out more about our professional motor claims handling platform, reach out today.