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'One in five drivers' open to black box

15/11/13

By Simon O'Hare

Almost one in five drivers will consider getting a 'black box' fitted in their car when they next renew their insurance, new research suggests.

There is a growing acceptance from motorists of telematics technology, according to findings released by independent market research firm Consumer Intelligence.

The system monitors driver behaviour and is designed to help lower the cost of premiums for careful drivers and those who cover low mileage.

Only around four per cent of drivers currently have black box technology in their vehicles as part of their insurance policy.

More black box insurance policies

Around one in five motorists - 18 per cent - expect black box car insurance policies to grow in market share, while 15 per cent believe that most drivers will have them in the future.

The survey suggested that there is a strong awareness of black box insurance policies among drivers, with four out of five knowing such policies are available.

Most of the respondents - 57 per cent - expressed the view that young drivers are the target market for black box policies.

Consumer Intelligence CEO Ian Hughes said: "With nearly one in five drivers saying they would consider a black box policy at their next renewal date it is clear that the market is changing.

"There is of course a difference between considering and actually buying and the numbers who have black box policies remain relatively low.

Benefits of black box policies

"However the launch of new products for the market and increasing acceptance of the benefits of black box policies will mean the sector should grow."

More than half - 52 per cent - of those questioned said they would consider a policy that was attractively priced to reflect annual mileage with the chance of a refund if they covered fewer miles in a year than expected.

Just under half of respondents - 47 per cent - said they would consider a policy that was priced to reflect driving style, rewarding safe drivers with lower premiums.

If the black box was fitted free of charge and car insurance premiums were lowered for safe driving, around eight out of 10 drivers - 84 per cent - said they would be interested.


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