Is a black box car insurance policy for you?
A black box policy might cut hundreds of pounds off the cost of your car insurance, but only if you’re the right type of driver. We share the pros and cons...
Insurance is often the most expensive cost involved in running a car. According to data from Confused.com, the average cost of car insurance during the second quarter of 2025 was £757. While that’s a 16% drop compared with figures from 12 months earlier, many drivers are still looking for ways to save money.
A particularly popular way for drivers under the age of 25 to save on their insurance premiums is with a black box policy, which can cost hundreds of pounds less than a conventional alternative. However, black box policies can impose restrictions on when and how you drive.
Here, we share how a black box insurance policy works and weigh up the pros and cons to help you determine whether this type of cover is right for you.
What is a black box car insurance policy?
A black box policy is a type of car insurance that measures how well you drive. This type of policy uses a small electronic device that’s fitted to the car – usually behind the dashboard or plugged into the 12v socket – or a smartphone app to track various driving attributes, such as:
- The speeds you travel at
- How quickly you accelerate
- How harshly you brake
- How fast you take corners
- What time of day you drive
- How many miles you cover
The insurance companies are able to use this data to give drivers a tailor-made quote for future premiums – meaning motorists who can prove they’re safe behind the wheel will likely pay less for their next policy compared with those who drive dangerously. Insurers may also reward safe drivers with small gifts, such as retail vouchers.
Are telematics schemes just for young drivers?
While black box insurance policies are typically bought by those under 25, who won’t have built up a particularly large no claims bonus (NCB), telematics policies are available for drivers of all ages.
In recent years, an increasing number of insurers have also targeted black box policies to older drivers who travel less frequently than they used to and want to prove that they are still safe on the road.
What about app-based driver monitoring?
Not all black box insurance policies require you to get a device fitted to your car by a mechanic. Instead, some insurers allow you to download an app to your Apple or Android smartphone. Apps, such as MyAviva and Hasting Direct’s YouDrive, use your phone’s GPS and telematics features to monitor how you drive.
Smartphone apps will also typically give you an overall score for each journey and offer tips on how you can improve your driving style. In the case of MyAviva, if you use the app for at least 60 days and complete at least 400 miles, at least 33 days before your Aviva Online or Aviva Premium car insurance policy ends, you may receive a discount on next year’s policy price.
It’s important to note that you’ll need to remember to bring your phone on each journey and make sure it has plenty of charge. Moreover, these apps typically activate automatically whenever the smartphone’s GPS detects movement, and that means a driver could unintentionally be scored for their next train journey. Because of this, it’s best to check all the automatically recorded journeys the app records were really conducted in your car, pointing out any trips that weren’t.
What are the drawbacks of a black box policy?
Since black box policies are designed to encourage safe driving practices, some insurers will impose measures to prevent bad habits behind the wheel.
One particularly significant drawback is that some black box policies discourage journeys that take place between midnight and 5am – with the likelihood of crashing increasing significantly at night. Although few policies actually ban drivers from travelling during these hours, it means a black box policy might not be the best option if you work late or do night shifts. It’s also likely that you’ll pay more if you cover a high mileage.
Another drawback to black box insurance policies is that some companies will levy an extra fee for drivers who consistently gain low scores. This fee can be as much as £250 on top of the premium. Drivers who fail to pay could have their policy cancelled altogether.
Finally, if you change your car during the policy, it’s likely that you’ll have to pay an admin fee to swap the box to the new vehicle, which might cost as much as £150.
Do black boxes encourage safer driving?
Up to a point, yes, but there’s more to safe driving than simply keeping the box happy. If black boxes are to make a significant impact on road safety, they need to be used in tandem with advanced driver training, such as an IAM RoadSmart Advanced course.
Is a black box insurance policy right for me?
Choose a black box insurance policy if…
- You’re under the age of 25 or have recently passed your driving test
- You’re an older driver who covers fewer miles than you used to
- You want to improve your driving skills
Don’t choose a black box insurance policy if…
- You’re an experienced driver with a strong no claims bonus
- You regularly travel at night
- Your annual mileage is high
FAQs
What does a black box do for insurance?
A black box car insurance policy uses a small device to monitor the way you drive. By doing so, the insurance company can get a better picture of how safe you are on the roads and adjust the cost of future premiums accordingly.
Do new drivers have to have a black box?
New drivers aren’t required to have a black box insurance policy during their first few years on the road. Nevertheless, many do because they are often cheaper than more conventional car insurance policies – particularly for those who haven’t built up a strong no claims bonus (NCB).
How much is a black box to be fitted?
If the black box needs to be installed by a professional, the cost of fitting should be included in the overall price of the insurance policy. However, in some cases, you’ll either be able to fit the black box yourself or simply need to install an app on your smartphone.
Does a black box track your speed?
Yes, black boxes are able to measure how fast you’re driving along with various other attributes – including the speed you take corners at and how sharply you accelerate and brake. These factors all contribute to the overall scores you’ll receive and, ultimately, the cost of your renewal quote.
