The spy in your car that should save you money

MORE than one million motorists in the UK have a ‘black box’ policy.

THE number of telematics policies on offer has gone up by more than a third in just three years, from 33 in November 2016 to 51 today.

THE black box will be installed in the car by an engineer for 27 of these, according to analysts Defaqto; 11 others use a ‘plug-and-drive’ system, where the driver has to install the device themselves; eight use an app to track driver performance; and the remainder give drivers the option of the above.

THE policies can be good value for newly qualified and young motorists. A 17-year-old newly qualified driver could insure a Ford Fiesta for £2,455.76 with a telematics policy, according to research from GoCompare. But the same female driver would have to pay £518.97 more for the cheapest policy that doesn’t come with a black box. A 30-YEAR-OLD newly qualified driver could also save £136.64 on insuring the same car by opting for an £866.88 telematics policy.

HOWEVER, a number of scenarios can lead to inaccurate readings. For example, driving under a bridge can make some devices think you have broken the speed limit of the road above you. Furthermore, black boxes may not have registered increases in speed limits on certain roads. A LOSS of phone or GPS signal can also result in your car being tracked as moving from A to B more quickly than it actually did.

OTHER devices with sensors can be too sensitive and may mistake a small bump in the road for a collision.

IF YOU’RE considering a telematics policy, read the terms and conditions thoroughly. These will tell you what your device will monitor and what implications braking harshly, speeding and driving at night could have on your policy.

MORE than four in five of the current telematics policies allow you to monitor the progress of your driving with an online dashboard. This can be useful when it comes to improving your score and potentially lowering your premiums in the future.

IT IS also worth checking if the insurer will charge a fee for removing the device and fitting it into a new car.

POLICIES where devices are installed by engineers are more likely to come with cancellation fees, to recoup the cost of fitting it in the first place.