Technology has been able to offer benefits in several sectors, and the insurance sectors are no different. Younger drivers are often met with excessive insurance premiums because of the information made available about drivers within a specific age range.
However, the use of telematics has ensured that younger drivers are given an advantage when it comes to showing showcasing how careful they are on the road.
The information is acquired by the attachment of a black box to the vehicle, but some may be worried about this due to some of the myths associated with black box insurance.
- Data Is Shared With Third Parties
Online protection is a hot topic nowadays, so it’s understandable why some are concerned with how their data is used.
However, data acquired by insurance companies is also used for the calculation of premiums, and legally can’t be provided to a third party without the driver’s consent.
- Drivers Can’t Drive at Night
Another myth associated with black box insurance is that drivers can’t drive at night. There are no curfews associated with black box car insurance, but drivers do need to be mindful that travelling at night carries more risk than travelling in the day, so premiums could be slightly higher as a result.
- Black Boxes Report Speeding to Authorities
Many people are worried that if they go over the speed limit then their information is sent to the police. However, instances of speeding will only be used for calculating insurance premiums, which will be more expensive if instances of speeding are constantly recorded.
- The Use of a Black Box Affects Other Functions in the Vehicle
Given how advanced the technology found in a vehicle these days, it’s understandable that some don’t want to add a device that could interfere with the inner working of the vehicle, but this isn’t the case.
The use of a black box simply uses electricity, like stereos and car alarms, and certainly don’t omit frequencies that can interfere with other devices in the vehicle such as Bluetooth.
- A Mistake Made Will Automatically Lead to High Premiums
Those new to the concept of black box car insurance may be concerned that that one mistake can lead to higher insurance premiums, but this is very rarely the case.
Insurance companies that make use of black boxes will be reviewing your driving habits over time, so while repeatedly driving at high speeds and braking urgently on a regular basis will affect insurance claims, a mistake made is unlikely to have a detrimental effect on the premium being paid.
When compared to other forms of car insurance, the use of black box car insurance can be overwhelming at times, but it’s important to remember that insurance companies aren’t spying on customers or using their data for nefarious purposes, but rather collecting data to ensure that fairer premiums are offered to young drivers.