01 August 2024
Car insurance without a black box: What to know
6 minutes
Choosing black box insurance might lower your insurance costs, especially if you’re a newer driver. However, despite some recent reports and changes to the regulations, these devices aren’t mandatory in the UK, and it’s still possible to find car insurance without a black box.
Here, we explain exactly what black box insurance involves and look at the reasons why someone might decide against it. Then, to help you make the right decision when choosing your car insurance, we explain the benefits you could see if you switch to black box car insurance.
What are black box insurance policies?
A black box is a small telematics device fitted to a vehicle to record information on how it’s being driven. They’re usually installed behind your car’s dashboard or on the battery, where they gather data and transmit it to your insurance company.
A black box typically includes a GPS, sensors that measure the forces the vehicle is under, and links to the car’s onboard diagnostics to measure fuel efficiency and engine health. This means black box insurance takes account of several different aspects of someone’s driving behaviour, including:
- How fast they’re driving
- Where and when they use their vehicle
- How aggressively they brake, take corners, and accelerate
When an insurance company has a real-time picture of the way their customer drives, they can build up a more accurate picture of that person’s risk profile and adjust their insurance premiums.
People who seem to be generally “responsible” drivers or who use their cars less can be put on a discounted rate, and people who drive more erratically can be charged more and given tips to improve their driving.
Reasons for choosing car insurance without a black box
Although black box insurance is now fairly mainstream in the UK, many people would still prefer not to have the devices in their private vehicles.
Alongside common reservations about data security, you might run into problems with black box insurance if:
- You’re on a tight budget. Black box insurance is sometimes “pay as you drive” or “pay how you drive.” This means your insurance payment could vary from month to month. In months when you used your vehicle more or drove less safely, your premium might be higher, and it can be stressful to budget for costs you can’t anticipate in advance. This can be especially problematic for younger people who might be on a lower income or who already pay more for insurance.
- You don’t have a fixed schedule. Some black box insurance policies can come with mileage restrictions or curfews. This means they might not be suitable for people who have to drive long distances or at night. If your schedule and vehicle use tend to change from month to month, black box insurance can become inconvenient.
- You share a car. If you share a car with someone else, their driving data is also sent to your insurer. If they drive more aggressively than you do, it could undo the savings you build up.
- You can’t wait for a box to be installed. While some insurance companies will send out a black box for you to fit behind the dashboard (which should be a simple job), others will fit the box themselves. Depending on the type of box your car needs and your location, there can be a long wait to finish setting up your new insurance. In contrast, some policies without a black box can give you instant cover.
Despite some potential problems, though, it’s worth taking the time to learn about the potential benefits of black box insurance.
Advantages of black box insurance
Although black box insurance was initially marketed to companies with professional drivers (check out Howden’s Driving Data enterprise platform here) and then to younger drivers, it’s now much more widespread.
When you choose black box insurance, you can access several advantages, including:
- Usage-based insurance, where your insurance costs are based on your mileage (for pay as you drive) or your behaviour behind the wheel (pay how you drive). This can save you a lot of money, especially if you don’t drive very often.
- Insurance discounts, especially for people like younger drivers or drivers returning to the road after a conviction. Building up a good driving record with black box insurance can help you access better deals faster.
- Feedback on your driving, especially with policies that are connected to an app that scores your driving. This can help you avoid slipping into bad habits, especially in the months after you pass your test.
- Incident data, which can be passed on to police or insurers if you’re involved in an accident. The data from a black box is much more reliable than the driver’s recollection or eyewitness accounts.
- Increased security, as the GPS in the black box can sometimes be used to trace the car if it’s stolen.
As people are weighing their options, a common question is, “How much cheaper is insurance with a black box?”
The answer varies depending on your insurer and their terms and conditions, and there are still a lot of other factors that influence your insurance quote (which we’ll touch on at the end of this post). However, the chance that you’ll get a cheaper quote for black box insurance vs no black box insurance is pretty high.
The other thing to bear in mind is that, with black box insurance, you could get a discounted insurance rate more quickly than with traditional insurance. Insurers who use apps to “gamify” the black box process can set targets for their customers, and then incentivise drivers with badges and rewards.
This process can be particularly attractive for newer drivers who might otherwise take a long time to build up a no-claims discount.
Is a black box mandatory in the UK?
If you’re asking, “Can I get insurance without a black box?” The answer is a clear yes. Black boxes are not mandatory in the UK, and there are no plans to make them mandatory.
The laws surrounding black boxes have recently changed. In July 2024, legislation came into force that made it mandatory for new cars for sale in the UK and the EU to be fitted with an integrated black box called an event data recorder (EDR).
But there are two major caveats here.
First, it’s important to note that EDRs are there primarily to record crash data rather than to monitor someone’s driving habits and share that information with insurers.
Second, while EDRs are now essential for new cars, older vehicles don’t have to be retrofitted.
So, in terms of more traditional black boxes, you can still opt out of having one installed in your car.
How to lower car insurance without a black box
Although there are benefits to black box car insurance, it’s clear these policies aren’t for everyone. If you want to save money on your car insurance, there are plenty of other strategies to try.
- Pay for your policy annually instead of monthly. If you can afford the lump sum, you can save significantly on your yearly costs.
- Raise your voluntary excess as long as you could still afford to cover the amount if you were involved in an accident or your car broke down.
- Install additional car security features, while steering clear of other modifications that could make your car more expensive to insure.
- Park your car in a safe place, like a private driveway or garage, rather than on the street.
- Add a named driver to your policy.
- If your premiums as a new driver are simply too expensive, going on your parent’s insurance as a named driver can be an effective way to lower the amount you pay.
- Opt for a car with a smaller engine, as these are usually less expensive to insure. You’ll find a list of the cheapest cars to insure for new drivers here.
Car insurance without a black box: The final word
When you choose a car insurance policy with a black box, you might be able to access discounted premiums, coaching, and incentives for driving safely. The data recorded by black boxes can also help you if you ever have to make an insurance claim after an accident.
Having said this, you don’t have to opt for a black box to drive in the UK, even if you’ve just passed your test. Some aspects of these policies mean they’re not always suitable, and you might be able to find other ways to lower your premiums and find cheap car insurance with no black box.
Ready to talk about your car insurance options with the experts? Get in touch with the team at Howden today, and we’ll help find the deal that makes sense for you.
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