Car insurance black boxes unpopular

04 October 2006
A new concept of placing aeroplane-style black boxes in cars has been met with widespread derision by British motorists, regardless of the fact that it could slash insurance premiums.

Research conducted by price comparison site showed that fewer than ten per cent of drivers in the UK would favour a black box fitted to their car, even if it would reduce their premium by a third (30 per cent).

The boxes would be installed to cars by insurers to examine the individual driving habits of motorists.

This would help the insurance providers determine exactly how much of a risk there was that the driver would make a claim, based on the distance and areas in which they used their vehicle.

Richard Mason, director of insurance for the price comparison site, said that he thought pay-as-you-drive insurance through similar schemes would represent a large part of the country's motoring future.

"The likes of Norwich Union and More Than are to be congratulated for innovation," Mr Mason said.

"However, it is evident some drivers are wary of these products and will need time to get used to these 'Big Brother' tactics.

"While this is understandable it is highly likely that black-box technology and pay-as-you-drive policies will reduce insurance costs for safe drivers as premiums will not be artificially inflated to cover others' bad driving."

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