What’s black field car insurance? • December 2021 Benzinga Insurance – Benzinga

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If you are a safe driver and you feel like you are paying too much for your car insurance, the answer may be black box car insurance. Black box car insurance, sometimes called telematics insurance, is a type of car insurance whose rates are based on your driving behavior.

The goal of black box auto insurance programs is to learn more about each policyholder's driving behavior and to price the premiums accordingly. This system rewards vehicle owners who can demonstrate that they are driving responsibly and have less insurance risk.

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What is black box car insurance?

Black box car insurance is any type of insurance program that collects your driving data and returns it to the insurance company. The name “black box” is derived from the hardware that is normally installed in your vehicle, although some companies use a smartphone app instead of physical hardware.

Important points

  • Black box insurance is a type of car insurance where your insurance premiums are based on your personal driving data.
  • Insurance companies install a telematics device in your vehicle or use a mobile tracking app to monitor your driving behavior.
  • Black box technology can track things like the average speed you drive, how sharply you turn corners, the average distance you drive each week, and more using GPS technology.
  • The black box or the mobile app stores and transmits data to your insurance company.
  • If you are a good driver, insurance companies may be able to offer you a lower premium rate after collecting black box data.

What is telematics insurance?

Telematics insurance is a type of insurance policy where your tariffs are based on data collected while you are driving. Insurance companies that offer telematics insurance install a physical device or instruct you to download a smartphone app associated with the company. When you drive a car, the device or smartphone app tracks your driving habits and converts this data into a score that represents your driving as a whole.

The tracker then forwards this information to your insurance company, where the insurers will get it and use the collected data and the result to determine how much you will pay for your auto insurance. If your result is better, your insurance provider will lower your rates. If it is higher, your insurance can increase your premium.

How does the black box car insurance work?

Black box car insurance works with GPS and other types of wireless communication systems. If you have installed a smartphone app instead of a black box, you may have to activate the device every time you drive.

As you drive, your black box device collects data and forwards it to your insurance provider. Some of the metrics your black box can track can be:

  • Your smoothness
  • How often do you brake and accelerate your vehicle
  • How fast do you usually go
  • What time is it when you normally drive?
  • The length of your average trip on the road
  • How many kilometers do you drive per day and week
  • The roads you normally drive on
  • How sharply you drive around corners

If your black box rates you highly, it is likely because you practice safe driving practices every time you hit the road. Your insurance provider usually gives you a set amount of time it takes to keep your black box or tracking app active – long enough to get an idea of ​​your driving habits.

Pay-as-you-drive insurance

If you don't drive a lot, an insurance policy can potentially save you money. As the name suggests, while you drive, you pay insurance fees based on the number of kilometers driven. A black box installed in your vehicle or a smartphone app installed on your phone records your mileage and forwards the data to your insurance company.

You can pay a daily basic fee and a kilometer rate for each mile you drive. That said, the less you drive, the less you pay for insurance. Low mileage drivers can often save money with a usage-based policy.

Weighing up the risk

The black box technology provides insurance providers with real-time data on your driving behavior, which gives the insurance company a deeper insight into your insurance security. This is beneficial for both you as a driver and for the insurer if you are a good driver as the insurance company can include your personal information in your premium price.

How do insurers use black box technology for their auto insurance?

Insurance companies use black box technology to assess how much risk they need to insure. If your black box registers that you are driving too fast, making very sharp turns and driving often, there is a higher chance that you will be involved in an accident. This increases the risk the insurance company takes in issuing an insurance policy, thereby increasing your rates.

Conversely, if your data shows that you are a responsible or infrequent driver, you are at lower insurance risk. This enables the insurance company to offer you a cheaper insurance policy.

Black Box Insurance Risks

There are some risks associated with black box insurance that you should be aware of.

  • You can accidentally increase your tariff: While no one believes they are a bad driver, some drivers are more likely to accelerate or suddenly brake. If you are a relatively new driver or you know that you are having trouble complying with speed limits, you should opt out of black box insurance.
  • Privacy concerns: Some drivers avoid black box insurance for privacy reasons. You may not feel comfortable with your insurance company monitoring where you are going and when, and there is no guarantee that your insurance company's system will not be hacked. Your insurance company can also sell your data to third parties.
  • Reporting inaccuracies: Your black box doesn't have a camera – it can only track data points. This means that your black box will penalize you when defensive driving is required. For example, if another driver swerves in front of you and you are forced to take a sharp turn, your black box will register this as unsafe driving.

Benefits of black box car insurance

Knowing that you are a great driver, there are a number of benefits you can enjoy by opting for black box insurance.

  • Cheaper insurance: The most obvious benefit of black box insurance is that you can save on insurance by making sure you are a responsible driver.
  • Encourages you to obey the driving rules: If you have a black box installed in your vehicle, the chances are you will try to run over the red light or check your text messages while driving. Driving more mindfully reduces the chance that you will be involved in an accident.
  • Helps track stolen vehicles: The black box insurance relies on GPS technology. If your vehicle is stolen, your insurance company can use the GPS data from the black box to help the police find your vehicle.

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Find the right car insurance

Are you currently driving without a minimum state insurance? If so, you could risk a very hefty fine or even your license revoked – not to mention the astronomical legal and medical costs you could incur if you were involved in an accident without insurance.

Even if you already have auto insurance, you may want to regularly check quotes from multiple vendors to see if you can get a lower rate with another company. Discover your insurance options now with Benzinga's simple car insurance quote tool.

frequently asked Questions

Does a black box make insurance cheaper?

1

Does a black box make insurance cheaper?

asked 2021-12-06

Sarah Horvath

1

The answer to this question depends on your driving habits. If you don't drive that often, always obey traffic and safety regulations, and comply with the speed limit, your insurance company will collect this data and determine that you are a lower risk driver. This can lower your required premium as drivers who regularly obey the law are less likely to be involved in an accident.

However, if you speed up or commit other violations while having a black box installed, your fees may go up.

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answered 2021-12-06

Benzinga

Do you have to pay for a black box?

1

Do you have to pay for a black box?

asked 2021-12-06

Sarah Horvath

1

Some companies charge a fee to install your black box while others don't. Selected companies can also charge you if they remove the black box as well. Speak to an insurance agent for the company you want to work with to find out more about the costs associated with your black box.

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answered 2021-12-06

Benzinga

Can you drive after 10 p.m.? with a black box?

1

Can you drive after 10 p.m.? with a black box?

asked 2021-12-06

Sarah Horvath

1

Black boxes do not control or restrict your vehicle – you can drive your car freely at any time, regardless of whether you have a black box installed or not. You will also not be penalized if you drive between 10:00 PM. and 5 a.m. If you don't drive a lot during these times, you may get a discount on your insurance.

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answered 2021-12-06

Benzinga

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