Telematics (black box) insurance for young drivers | SavvyWoman

Telematics (or ‘black box’) insurance can cut costs for young drivers. What’s on offer?

Font size

0
0
0
0

If you’re a young driver you may be able to save money on your insurance using telematics or black box insurance. What’s on offer?

Coverbox

Coverbox works slightly differently in that, although it collects information about your driving all the time via the telematics black box, it only analyses it if you’ve had an accident or near the time of your insurance renewal – it’s not monitored all the time. It’s also slightly unusual in that it’s teamed up with a panel of different insurers.

When you take out the policy, you’re asked a standard set of questions but also information about when you think you’ll drive, how many miles you’re likely to do and where the car will be kept overnight.

SAVVY TIP: If you drive less or do more driving at ‘non peak’ times your insurance premium may come down.

If you drive more miles, do more driving at night or don’t keep your car where you said you would when you filled out the application form, you could find your insurance premiums rise (or, in the worst case scenario, that the policy is cancelled).

SAVVY TIP: You can access a web portal which gives you information about when and how much you’ve driven. For drivers under 23, ‘super peak’ times are Friday, Saturday and Sunday night/mornings from 11pm until 5am and the same time on the night/morning of a public holiday. For all drivers, peak times are Monday to Friday 7.30-9.30 am and 4.30 to 6pm.

Unlimited mileage? No absolute limit but you’ll pay more if you drive more miles than you estimate on your application form.

Limits to when you can drive? No, but you’ll pay more for peak and super peak (if you’re under 23) driving.

Cost of the device? A fee of up to £70 for having the device fitted, but it’s incorporated into the premiums. You will have to pay if you want the device to be fitted to a different car.

Worth knowing: Your telematics device also acts as an accident alert and theft recovery (your car may be able to be tracked if it’s been stolen).

Ikube

Ikube is owned by an insurance broker called Towergate and works in a similar way to Coverbox in that it gives young drivers a discount for not driving between 11pm and 5 am. When you insure, you get a ‘safer driver discount’ in return for not driving at night (after 11pm). If you drive after 11 pm you’ll be ‘fined’ £50 if you drive between 11pm and 11.29; £75 if you drive between 11.30pm and 12 midnight and £100 if you drive between 12 midnight and 4.59am. These charges are per night.

SAVVY TIP: If you reinsure with iKube for a second year, you could get a discount based on your speed, types of roads you’ve driven on, whether you’ve driven during ‘red’ (banned) hours and your annual mileage.

Unlimited mileage? Yes

Limits to when you can drive? Yes. You’ll be charged £100 per night for driving between 11pm and 5am.

Cost of the device? No extra charge as the cost (£199) is incorporated into the premiums but is not refundable after 14 days. In the second and subsequent years, you’ll have to pay £99 for the cost of the telematics device. You will have to pay if you change your car (£100), want the device removed (£60) or miss an appointment to have it fitted (£60).

Ingenie

Ingenie is targeted at drivers aged 17-25 and uses a ‘black box’ to monitor young motorists’ driving and help them become safer drivers. Ingenie monitors your driving style, relaying information about cornering, braking, speed, acceleration and swerving.

SAVVY TIP: Unlike some telematics insurance, Ingenie doesn’t impose a curfew or restrict the number of miles the young driver can drive.

If you take on board the feedback and improve your driving, insurance costs could come down. Premiums are reviewed every three months rather than annually.

SAVVY TIP: Ingenie sends drivers short Twitter style messages every ten days as long as you’ve driven at least 40 miles in that time. You’ll be sent feedback about your driving via the Ingenie app, which parents – as well as policyholders – can view via the app or website.

Unlimited mileage? Yes

Limits to when you can drive? No. You can drive any time of day or night.

Multiple drivers? Yes, you can have more than one person insured on the policy, but the feedback will be based on how the car is driven (no matter who is driving it) rather than the individual driver’s driving.

Cost of the device? No extra charge as the cost (£150) is incorporated into the premiums. It’s not refundable after 14 days. You will have to pay if you change your car, want the device removed (£80), damage it (£150) or miss an appointment to have it fitted (£45). There’s also a £45 charge if the black box can’t be fitted to your car because it’s been modified or is parked where the engineer can’t access it. If you don’t want to renew your Ingenie insurance, the device can be decommissioned and you won’t have to pay to have it removed. If you cancel the insurance within the first few months you’ll be charged £165 for the black box.

Worth knowing: Your telematics device also acts as a theft recovery device (your car may be able to be tracked if it’s been stolen).

Insure the Box

Insure the Box is targeted at both young and female drivers. You’re given a basic allocation of 6,000, 8,000 or 10,000 miles a year. If you want to drive more you can buy ‘top up miles’ in bundles of 250, 500 or 1,000 and the amount you pay per mile will depend on your own premium.

SAVVY TIP: If you drive well you’ll be able to earn bonus miles each month (which can be rolled over to the following year if you don’t use them). You can earn up to 100 a month or 1,200 a year. However, if you drive too fast, your ability to earn bonus miles will be reduced.

Your premium will also be reviewed every year and may fall after 12 months if your driving has been ‘positive’.

SAVVY TIP: If you drive at night regularly you’re unlikely to earn so many bonus miles. You can also buy reward miles by shopping with selected retailers. For every £100 you spend, you earn reward miles (the number will depend on your premium).

Unlimited mileage? No, there’s an initial limit of 6,000, 8,000 or 10,000 miles, but you can buy extra miles.

Limits to when you can drive? No, but driving late at night is more expensive.

Cost the device fitted? No extra charge as the cost is incorporated into the premiums. You will have to pay £80 if you or Insure the Box cancel the policy within the first year and there may also be a £30 administration charge.

Worth knowing: Your telematics device also acts as an accident alert and theft recovery (your car may be able to be tracked if it’s been stolen).

Autosaint

Autosaint has a panel of several lenders. Some don’t like to insure drivers who drive between 11 pm and 5 am, others don’t charge extra if you do.

You can access your driving score online and if you drive badly you’ll be sent text and email alerts telling you how to improve. Parents will be able to access the online dashboard to see how you’ve been driving. If you ignore the advice you could have your insurance cancelled.

SAVVY TIP: Every three months your premium will be reviewed and you may have to pay more if you drive badly (but you won’t get a discount if you drive well until renewal). If you drive well, you could get a renewal discount of up to 25% on your second year’s insurance.

Unlimited mileage? No limits on mileage but you will be charged extra if you drive more than you estimated when you applied for the policy.

Limits to when you can drive? This may limit the insurers that will insure you. The Autosaint information says it’s best not to drive between 11 pm and 5 am.

Cost of the device? The device is £183.50, which is included in the premium. There’s also a £52.50 a year ‘data’ charge which you pay at renewal and a fee of £163.50 if you want the device to be transferred to another car or £78 if you want it removed.

Worth knowing: Your telematics device also acts as a theft recovery device (your car may be able to be tracked if it’s been stolen).

Related articles:

How to avoid becoming a victim of crash-for-cash car insurance scams

What are your rights when buying a second-hand car?

Finding a driving instructor – what should you look for?

SavvyWoman email newsletters: If you found this information useful why not sign up now to receive free fortnightly email newsletters with money saving tips and help? You can sign up at the top of any page on the website and your details won’t be passed to any other company for marketing purposes.