Insurers hit ‘black box’ drivers with fines and policy changes

Insurers hit ‘black box’ drivers with fines and policy changes

Latest Motor News // 24 February 2014

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Black box insurance policies

The controversial ‘black box’ insurance policy has come under criticism this week as research reveals that it could actually increase premiums instead of lowering them. Newly qualified drivers could be facing costs of £2,500 for an insurance policy and so the black box policy offering upfront savings is particularly attractive to young adults. Moneysupermarket suggests that drivers could save an average of £212 by having a black box fitted; however with risk of charges and fines that saving could soon be catching drivers out.

The policies come with a set of guidelines to accommodate the saving such as driving curfews, commonly between 11pm and 5am, and often dictate which areas a driver can and cannot entre. Speeding, braking and acceleration are all monitored to reduce the risk of accidents and therefore reduce insurance costs.

They might increase premiums

However, a Money Mail investigation has shown that the theory is different in practice as drivers are being hit with unexpected fines for offences. Commonly this includes speeding, whether they are caught by authorities or not, and for driving outside of the agreed area or times. Fines could be as much as £100 and could result in a change in policy terms.

Additional charges

iKube specialise in learner and young driver insurance and are reported to charge £100 per night for anyone caught driving outside of its curfew hours. Some companies will charge up to £50 if an appointment to fit a black box is missed and £120 to fit to a new vehicle.

Like all policies, it pays to check the small print so ensure you do if you are considering a black box insurance policy. If you are also thinking about a new car but don’t have a lump sum to go shopping with, ask for a Moneybarn car finance quote today. Moneybarn is the UK’s leading provider of specialised car finance and can help you to own a car even when you have been refused credit elsewhere. For your free, no obligation finance quote, visit www.moneybarn.com today.