What is black box insurance and can older drivers benefit?

In this article, we’ll look specifically at black box insurance for older drivers. We’ll outline how it works, and what makes it different to traditional insurance models. We’ll also list some pros and cons you may wish to consider as a motorist with more experience.

What is black box insurance?

Black box car insurance uses a telematics device (or black box) to track and record your driving. This information is automatically shared with your insurance provider to help build your bespoke risk profile. As the driver, you’ll also receive feedback or a score. And, if you can keep a track record of safe driving, you may be able to reduce the cost of your insurance.

How does a black box work?

Black box devices come in many forms. These include:

• Larger units that are installed by mechanics, usually in a discrete location behind your car’s dashboard or on the battery
• Tags that stick to your windscreen
• Trackers (around the size of a matchbox) that plug into your car’s dashboard

Some companies also request that you download an app onto your smartphone instead of fitting a physical device. These apps use the phone’s GPS (Global Positioning System) and other sensors.

Whichever method you use, a black box won’t impact your car’s performance. It will simply monitor various aspects of your driving; from the speed you travel to the roads you use (we’ll expand on this further below).

Can older drivers have a black box?

Yes, black box car insurance is available to drivers of all ages. However, it might not be the right choice for older drivers, which will look into more closely below.

Are black boxes used by older drivers?

Generally, this type of insurance is more popular with younger drivers as it presents an opportunity to lower the cost of car insurance without driving experience.

For older drivers, who have plenty of driving experience and few claims, then black box insurance could be more expensive than quotes for other forms of car insurance - although prices will vary from person to person. It also comes with restrictions that some drivers may find limiting (more on this below).

However, for some older drivers there are certain circumstances where black box insurance can prove beneficial. 

Example One

If you’ve been involved in an incident and made a claim, a black box could be a way of demonstrating to an insurance provider that you remain a safe driver, potentially bringing down the cost of your insurance.

Example Two

Alternatively, if you’ve only recently passed your test, a black box can help make up for your lack of driving experience.

How does black box car insurance differ from other options?

Essentially, the difference between black box car insurance and more traditional insurance products is the criteria used to calculate the cost of your cover.

What influences the cost of traditional insurance?

From your personal claims history to industry statistics, many factors contribute to the cost of traditional types of car insurance. These criteria vary depending on your provider, but can include:

• Your age: certain aged drivers, specifically teens, are statistically more likely to be involved in insurable incidents
• Your driving experience: experienced drivers typically have a better understanding of road safety and are less likely to be involved in accidents
• Your location: areas with higher crime rates or heavy traffic can lead to a higher likelihood of accidents or vehicle theft
• Your No Claims Discount (NCD): accumulating years without making a claim demonstrates responsible driving behaviour
• Your vehicle type and insurance group: cars that are more expensive to repair or replace, or those with high-performance capabilities, typically require more cover
• Vehicle usage: the more you use your vehicle, especially for long commutes or business purposes, the higher the likelihood of accidents
• Your occupation: certain professions are statistically linked to higher or lower risks of accidents
• Your credit score: insurers may use credit scores to predict the likelihood of claims, with lower scores potentially indicating higher risk

These are just a few of the factors an insurance provider will consider. Many companies use hundreds of factors when putting together a car insurance quote.

What factors influence the cost of black box insurance?

For black box insurance, the cost of your cover is calculated by building a bespoke risk profile, using data collected by your device. Alongside traditional factors (see above), black box insurance will also consider the below:

• The speeds you travel: consistently driving at safe speeds reduces the risk of accidents
• The distance you travel: the more miles you drive, the higher the probability of being involved in an accident
• The time you travel: driving during high-risk periods, such as late at night or during rush hours, increases the likelihood of accidents
• Where you travel: regularly driving in high-risk areas, such as those with heavy traffic or high crime rates, increases the chances of accidents or theft
• Your breaking and accelerating habits: smooth, controlled braking and accelerating indicate safer driving practices

What are the pros and cons of black box insurance for older drivers?

Here, we list some advantages and disadvantages of black box car insurance for more experienced drivers.

What are the advantages of black box insurance for older drivers?

Black box insurance doesn’t tend to be the right choice for older drivers. However, there are some circumstances where this may not be the case. And there are a few black box features that may prove useful, such as:

Potential cost savings

Reducing the cost of your car insurance through a black box device is possible but not guaranteed. For instance, if you lack driving experience or have recently made a claim, you might be able to bring down your car insurance costs through the data on your black box. This might be through having low mileage, consistently scoring as a safe driver, or by travelling in the daytime using safer roads.

Accident data for claims

If you have an accident, your black box data can help a provider what happened, which might be help with any claim made after the incident.

Theft recovery

The GPS functionality within a physical black box device can assist in recovering a stolen vehicle.

What are the disadvantages of black box insurance for older drivers?

Overall, there tends to be more disadvantages than advantages for older drivers, which include:

Admin fees

You may need to change your vehicle during your insurance period. For example, to cater for a lifestyle change or a mobility requirement. If so, it’s worth noting that some insurers may charge you to remove and refit your device where required. Equally, you may wish to add another driver to your insurance, this can also come at a cost.

Potential for higher costs

With a good driving record and no claims discount, you’re likely to find better prices through traditional car insurance cover. You may also find that a black box picks up on certain driving habits that are hard to stop. These can increase the cost of your insurance even if it’s an infrequent behaviour.

Restrictions

Some black box car insurance companies may have restrictions on annual mileage limits or driving times (as the likelihood of crashing increases at night).

Technical challenges and maintenance

Setting up and using telematics devices or smartphone apps will be additional steps a driver will need to factor in. Certain black box apps can drain your phone’s battery and may need updating regularly to ensure they’re working properly.

Privacy concerns and stressful driving experience

Continuous monitoring and data collection can be seen as invasive by some motorists. Some drivers may find being monitored causes stress or anxiety, altering their driving experience.

What other car insurance products could I explore as an older driver?

Many older drivers find that black box car insurance isn’t a good fit for them. Luckily, there are other options you can explore, such as:

• Third Party Only
• Third Party, Fire and Theft
• Comprehensive cover

To learn more about these options, you can read our guide: Should I get comprehensive or third party car insurance?

Does Age Co offer black box car insurance?

Age Co does not offer black box car insurance. However, we have other options available that have been selected with the over 50s in mind. Click here to learn more.

Summary

If you’re an older driver and considering black box car insurance, keep in mind these key points:

• Black box car insurance is available to drivers of all ages.
• Black box car insurance uses a telematics device (black box) to track and record your driving, which helps an insurance provider build a risk profile to inform their car insurance prices.
• Many older drivers opt against black box car insurance, as it tends to come with higher costs and more restrictions.
• However, if you’re new to driving, you may find black box car insurance a useful way to mitigate your lack of experience and get a better price.