The newest trend in driving safety is the black box. Due to the rising cost of car insurance, black box insurance policies are becoming increasingly popular with many drivers using the black box insurance to reduce their premiums.
This black box insurance is valuable for young drivers as it charges you based on your driving style instead of using statistics. This device is no bigger than a smart phone that fits on your car and sends the data back to the insurer. The black box insurance has its own benefits and disadvantages of its own:
Pros of Black Box Car Insurance
The saving is one of advantage for black box insurance. The Black Box Car Insurance is capable of saving up to 20% on your premium which is a total of £500 a year. This saved money can be used for fuel.
- Tracks the vehicle:
The GPS tracking system installed in the device can be prove to be a medium to find a vehicle if lost or stolen.
- Safer driving
Black boxes encourage safe driving, even though it isn’t necessary that you must need a black box to do that.
For any accidents caused or to claim the insurance, the data from the black box provides evidence to the accidents caused.[Further Reading ] Whole Life Insurance Pros and Cons
Cons of Black Box Car Insurance
Though Black Box Car Insurance is an easy way to save good amount money, there may be many disadvantages of the black box. Few of them are discussed below:
You must pay for the black box fitted in the car and also payment is necessary to get it removed.
The insurance company may charge you for driving in rush hours or during certain hours like from 11PM and 5AM.
- More Expenses:
Paying fines for every rule breaking, bad driving, and long journeys or breaking the limits, you may find the black box car insurance more expensive than other alternative insurance.
You may have some privacy implications as it tracks your every movement and reviews them.
- Hard to budget
As you are unaware about the total cost you may have to spend, accurate budgeting may be impossible.
Conclusion on Black Box Car Insurance Pros and Cons
With a good car insurance deal with black box companies, you can make big saving depending on your driving habits.
Riding few miles mostly in the day outside of rush hour can help you save your money however long trips and journeys during high risk times may make the premiums higher than with a standard insurer.