Also known as a telematics box, a black box is a GPS device that records how you drive. Black box insurance allows insurers to calculate risk and base your premiums on your Driver Score or Driver Safety Score – in conjunction with traditional factors like age, claim history, and more.
Here’s the difference between standard car insurance and black box insurance:
Standard car insurance: insurers use multiple factors to determine how likely you are to make a claim in the future. While they’re usually accurate, some drivers may nonetheless pay more expensive premiums due to factors like their younger age or their claims history (regardless of whether they were at fault or not).
Black box insurance: insurance companies are informed by cold hard data that presents how you drive. This technology can mean good drivers may be awarded with lower premiums over time.
You may also be able to pay per kilometre; meaning the less you drive, the less you might pay for insurance.
A black box records your driving habits to present an overall picture of how you drive. Here’s just some of what determines your score:
The black box will also consider things like how much you drive and where you drive, as different locations present varying risks.
The following types of people may benefit from black box insurance:
N.B. Many safe drivers already receive lower premiums through a ‘no claim discount’. While this doesn’t exist on black box insurance, you may still be rewarded for safe driving (and not making insurance claims) through lower premiums.
Advantages
Disadvantages
*Pricing not yet determined. Black box insurance is not yet widely available in Australia.
A black box is a device that records how you drive (e.g. corner control, braking). The insurance company usually employs a third party to handle the installation. The black box device is typically the size of a smartphone and sits in the car – usually under the hood.
Black box insurance is not currently widely available, and prices vary between those who provide black box installation. Contact the insurer to find out how much this can cost.
Yes, you will have access via a user account or app on your smartphone.
There are many other ways to reduce your premiums, including:
While black box insurance is not yet widely available in Australia, Compare the Market offers you the luxury of comparing multiple types of insurance with our free comparison tool.
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