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Black box insurance sales up five fold in two years - 10/08/2012

Black box insurance sales up five fold in two years

Research from the British Insurance Brokers’ Association shows that ‘black box’ motor insurance sales have increased five fold in the last two years, and are set to snowball to around 500,000 in two years’ time.

BIBA says that the ‘black box’ technology, also known as telematics, can offer savings on motor insurance of around 25% to 30%. Some young drivers can save up to £1,000.

The technology works by recording journeys or driving behaviour so that premiums can be accurately applied to a driver’s ‘risk profile’.

“The dramatic increase in black box technology follows the rising cost of premiums for young drivers, the decreasing cost of technology, and new product availability from insurance brokers,” said BIBA’s Head of Communications Leighann Forsyth.

BIBA also said that women, who are likely to see an increase in motor premiums later this year due to the European gender rating ban, could benefit from reduced premiums from telematics.