More than one in five young male drivers are now using black box insurance to help reduce their premiums, according to new research.
Data from Consumer Intelligence has shown that 22 per cent of male drivers aged between 18 and 24 have taken up the option, while only 14 per cent of women in the same age bracket have.
So-called black box insurance works by installing a telematics device in the driver’s car, which monitors driving input and behaviour and builds up a picture of how risky the driver acts.
22 per cent of young male drivers use it
Using this to calculate premiums, drivers who behave well on the road can benefit from much lower premiums than they previously would have been able to access.
As many as 323,000 drivers in the UK now have telematics policies according to the research, a rise of around nine per cent in the past year and a half.
However, despite the rise, insurance companies are being urged to offer similar policies for different age groups after complaints that premiums are on the rise for older drivers.
Policies for older drivers could be on the way
Consumer Intelligence’s figures claim that 61 per cent of drivers would take out telematics-based insurance if it cut their premium, while 59 per cent would if they were offered refunds for safe driving.
The same data, however, shows that two in three drivers don’t believe that black box insurance will ever become a mainstream option, with just over half saying that they think it will remain niche.
Ian Hughes, chief executive of Consumer Intelligence, said: “There is still a long way to go for the motor insurance market before there is mainstream adoption of telematics.
Would you drive a car with a black box?
“There is increasing acceptance of telematics and genuine benefits for drivers and insurers to use it in terms of safer driving and better pricing.
“However, insurers need to look at developing policies which address the needs of different age groups and reflect what they want and would value from telematics.”
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