Black boxes can now save OLDER drivers a fortune

They’re the gadgets that slash teens’ car insurance premiums. But...

OLDER motorists facing sky- high car insurance charges due to their age are being urged to save money with new technology that prices premiums simply on how you drive.

Black box car insurance has been praised for reducing accidents and helping young drivers save hundreds of pounds. Officially known as telematics insurance, this type of policy gets its name from the small device insurers fit in your car to monitor your driving.

Typical car insurers price premiums according to how much risk they think you pose, based on such factors as your age and where you live. But with telematics policies, prices can go up or down depending on your driving style, mileage, routes you tend to take and the time of day you travel.

Studies show that drivers who have a black box fitted into their car tend to drive more carefully. In return, they are rewarded with a cheaper policy.

The deals are proving popular among younger drivers desperate to reduce prohibitively high premiums because of their age.

Around one in three drivers under 25 uses a black box to save money on their insurance, according to analysts LexisNexis Risk Solutions.

Yet, only one in ten people aged between 35 and 54 has taken out a telematics policy — and just one in 20 drivers aged over 55.

Money Mail research suggests this may be because older drivers are not aware of this type of insurance. Our analysis shows that drivers in their late 50s were typically offered half as many black box deals as drivers in their early 20s.

This is despite motorists aged 50 to 64 standing to save an average of £484 per year with such a policy, according to comparison site Comparethemarket. Those aged 65 to 79 could save £343, and over-80s could pocket £145, it adds.

Martyn Mathews, of LexisNexis, says: ‘The vast majority of drivers who could gain from the safety advantages of telematics and insurance costs based on how they drive, rather than how insurance providers think they might drive, are missing out.’

Experts believe offering more elderly drivers black box policies could also help put an end to unfairly high premiums.

Earlier this year, Money Mail revealed how some octogenarian drivers were quoted up to £3,800 for an annual premium, despite driving for six decades without a claim.

Insurers put over-80s into a ‘ high risk’ category, because they are statistically more likely to have an accident.

But as Roger Ramsden, group chief executive of telematics insurer MyPolicy, says: ‘ The traditional insurance industry is based on putting drivers into clusters of risk, but, by its very nature, that system means that half of those in every group are overpaying and the other half are underpaying.’

Black boxes could overcome this problem, as older drivers can use their driving data to prove they are still safe behind the wheel.

Despite the benefits for all drivers, insurers are targeting black box policies at younger people who may be more willing to try out new technology and are desperate to lower their skyhigh premiums.

But there may be other factors putting older drivers off.

A third of drivers who told Comparethemarket they did not want a black box were worried about having to pay for the removal of the box if they switched insurers.

Coverbox charges £ 60 to remove its gadget, while the cost to disconnect the device during your policy with Admiral LittleBox is £100 — although there is no fee if you choose not to renew at the end of your cover.

And there are extra charges if you change your car: Insurethebox charges £90, Admiral £59.50 and Ingenie between £80 and £160, depending on how many times you move vehicle.

Most black box insurance companies offer free installation and include the cost of the device in your first premium.

But some insurers require you to have a minimum premium, such as Admiral LittleBox, where drivers must pay at least £650 per year. Others may charge a ‘device management fee’, such as Coverbox, which is £120 for the first year and £60 every year thereafter.

One solution could be to install your own black box, which allows you to share driving data with any insurer. The newly launched Theo ‘super dashcam’, monitors and films driving, and will let users share their data in the near future. It costs £169.99, plus £50 for installation and a £4.99 per month subscription.