"Black Box Insurance" to become the norm?

A research study claims that over 50% of drivers are planning to move to a "Black Box" insurance policy in the next five years.

The idea of the black box is that it tracks the driver, so it knows if they are driving too fast or erratically. The benefit is that safer drivers can prove they are lower risk and can therefore get lower premiums.

The two parts of the market most attracted to the product are, paradoxically, the youngest and the oldest drivers. Young drivers (or possibly their parents who are footing the bill), may find a black box is the only way of getting affordable car insurance, while older drivers may be able to demonstrate their law-abiding habits and get a bigger no-claims-discount.

One of the leading insurance companies for young drivers, Young Marmalade welcomed the research. "We have seen significant improvements in driver behavior since the introduction of our 'orange box' technology," said MD Crispin Moger. "Intelligent Marmalade allows young drivers to prove that they are good drivers but the 'orange box' will intervene if they have been driving unsafely. Only 3% of our young drivers have incurred increased premiums due to poor driving. It's a successful deterrent which is definitely making Britain's road safer."

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