Black box car insurance – Why is it cheaper? Does it track my driving? otherwise known as telematics insurance, is a way for drivers to save cash on their premium cost. Opting for a telematics policy, however, does mean you will be imposing a number of clauses, restrictions or terms and conditions to allow you access to the reduced rates. In fact, Admiral has more than 200,000 telematics customers and the number of LittleBox policies it sold rocketed by 25 per cent last year.Research has revealed that drivers could slash the cost of their premium by up to 20 per cent by opting for a black box policy. New data by insurance firm reveals that demand for telematics or black box insurance policies is still growing rapidly. However, despite the increase in telematics policy users, there are a number of myths and concerns that are widely held by drivers about the terms of the policies. For example, some drivers are concerned that if they broke the speed limit, intentionally or not, then that would be recorded by the insurer and reported to the police. Gunnar Peters, head of Telematics at Admiral comments: “Insurance costs for young drivers can be the biggest barrier to getting on the road. “Telematics policies were always designed to help reduce the cost of insurance for young drivers, not hike it. “With LittleBox, drivers who are eligible can save between 6% and 23% on the premium up front compared with a standard Admiral quote. “Black box insurance policies are a friend not a foe; if you’re a responsible driver there is no reason why you should end up paying more, and for four out of five drivers it ends up working out in their favour – with them saving money at renewal.” “More than three years after we launched Admiral LittleBox, our main telematics product, there are still many misconceptions about these types of policies. So, we’ve revealed the top myths to clear up the confusion for younger drivers and their parents, to help them make informed decisions about black box insurance policies and keep down the cost of driving. “These myth-busters should dispel people’s worries. We always advise people to check their individual policies when taking out any kind of insurance as there can be variations between providers.”. Myths busted or confirmed by Admiral: 1 This type of policy is just a way of ‘Big Brother watching you’, allowing the insurance provider to hike premiums. This is a common misconception and quite the opposite is true. With Admiral LittleBox, a small box is fitted in your car behind the dashboard. Admiral doesn’t track where you are in real-time. The emphasis is not on where you drive but how you drive. This device looks at your driving style and measures things like braking, cornering and speed. It offers you a chance to show youre a safe driver and your renewal price is based on how safely you drive. 2 The way I drive will increase the cost of my insurance premium. Looking at your driving habits allows your insurance provider to get a better understanding of how you drive as an individual. This means they can reward good drivers, with discounted premiums. 3 I won’t know if I’m driving well or not. There are no secrets with Admiral you can log into your personal dashboard whenever you want to see how youre driving and pick up tips to help you drive safely and get the best discount. 4 My insurer will inform the police if I commit a speeding offence Admiral does not inform the police if the data collected suggests you committed a speeding offence. We will only share data if a police inquiry is made or a serious incident has occurred. 5 I won’t be able to drive at night. There is no curfew with Admiral LittleBox. Of course, there are certain times of the day when accidents are more likely to occur, such as at night. But you wont be charged a fee for driving in the night with LittleBox. You may not get as big a discount if you always drive at night but you will still get an upfront discount and potential renewal discounts. Make sure you check this with your insurance provider as this is not a standard policy across the industry. 6 A black box will mess with my music. Admiral LittleBox is completely safe and does not interfere with your car. Were not interested in how loud you like to listen to your music while you drive; we just want to reward good drivers. Like any electronic device, it uses a little bit of electricity from the battery. 7 All my friends will know I’ve got a black box – it’s not cool! LittleBox is fitted out-of-sight behind your cars dashboard so no one will know you have the unit fitted unless you tell them. 8 Insurance providers share this data and penalise drivers at renewal. At Admiral, we do not pass on your details or data to rival insurance companies for pricing purposes. 9 If a bad driver borrows my car I will be penalised. Your driving score is worked out as an average during the policy, so shouldnt have an overall negative effect if the car is used by another person once in a while. But, if they arent up to your standards – tell them!. 10 I will get fined if I go over my estimated mileage due to unexpected trips. If you take out a LittleBox policy, well ask you to estimate your annual mileage and well periodically check how much mileage you have covered and if youre on track to meet your estimate. There is no monthly mileage limit. If after two months it looks as though youre going to go over the estimate by 25% or more well adjust your mileage and your premium could go up. However, we will contact you before making any changes. If you are charged and dont end up using the new estimated miles, well refund you at renewal. 11 You will tell my parents where I drive. As the policyholder only you will have access to the online dashboard that shows you when the car is driven. You can log in whenever you want and the dashboard wont show the location of driving done, only the times of the journeys. 12 The black box will distract me when I’m driving. LittleBox is a small unit fitted out-of-sight behind your cars dashboard. It isnt like some driving apps that you have to activate before setting off, once its fitted you can forget its there and drive as normal. You wont see the box again and you wont hear a peep from it.