Drivers saving hundreds of pounds with black-box car insurance
Hard-to-believe but true: car insurance premiums are actually falling, with the reductions being driven by savings on telematics-based “black box” policies, which reward safer drivers.
Research by Consumer Intelligence shows that the average insurance premium has fallen by more than nine percent compared with last year.
The average cost of a fully-comprehensive policy is now £766. And 22 percent of the cheapest car insurance quotes are coming from black-box providers.
Young drivers are winning
Less experienced younger drivers, who’ve had the most to gain from having a black box fitted, have been making the biggest savings. Their average annual premiums are an eye-watering £1,608.
Telematics policies account for around 60 percent of the cheapest quotes available to them, so that quotes for under-25s have fallen by 15.4 percent over the last 12 months.
Older drivers – perhaps more reluctant to embrace the report-back technology – have seen smaller reductions in car insurance costs: cuts of 6.8 percent on average.
But they are getting on board with the idea: use of telematics by the over-50s has increased by three percent since March, according to Consumer Intelligence.
John Blevins, who oversees pricing at the research organisation, says: “Over-50s experience the biggest price rises as a percentage, and the smallest price cuts, so older drivers should explore telematics if they want to beat the demographic trend.”