Although car insurance premiums have been dropping in recent months, in particular for the younger driver, the younger motorist is still faced with huge premiums that can be quite prohibitive. In fact, in many cases, the monthly car insurance premium can be greater than the amount of the car loan repayments.
Obviously, any way that the young and inexperienced motorist can reduce their car insurance premiums has got to be welcomed such as by having anti-theft devices fitted to the car, parking the vehicle in a garage overnight and agreeing to pay a higher excess but what else can such drivers consider doing in order to reduce the premiums even further?
Well, Black Box insurance that is also known as Telematics insurance has been around for quite some time now but seems to be offered by an increasing number of the major car insurance companies. This form of car insurance uses a black box to monitor such things as how the person at the wheel of the car is driving the vehicle and when the car is being driven. For instance, it may look at such things as speed, cornering, braking, where the car is being driven and what time of the day or night the car is being used.
All these factors help the insurer assess the risk to them of a claim being made and they are better able to provide a more personalised car insurance premium that reflects the driver’s ability at the wheel. This is opposed to merely looking at a more general pricing structure based upon such things as the driver’s age and driving history including claims experience.
The benefit to the young or inexperienced motorist is that their car insurance premium is more likely to be less with Black Box insurance than with a conventional type of policy. The premium may be reviewed on a regular basis such as 3 or 6 monthly based upon the driving data provided through the black box that is often attached under the dashboard in a car.
So, if this is something that you feel may be of interest to you then you could make some more enquiries in this respect. Who knows, you may be able to get cheaper car insurance.