With this policy, you will only pay the distance you actually drive. So the more you drive, the more you pay. The insurer will install a tracking device in your car. This device is small and roughly about the size of your phone. It will transmit your driving (miles, speed, etc) to the insurance company.
Most of these schemes provide you with online acess to the data collected. The policy is based on the assumption that if you travel lesser, the odds of an accident are much lower.
The prices per mile varies from company to company. The time of the day the driving takes place makes a difference to the price too.
In normal circumstances, the insurance company will collect information about you and then measure it against certain proxies determined by the company. They will assess you risk accordingly.
Therefore, less experienced drivers, first time drivers, or those who own high performance car tend to be stuck with high insurance premiums.
With these black boxes, the insurance policies are tailored more towards the individual and therefore lowering the premiums if you are a conscious driver.
It also offers you more flexibility over how much premiums you actually pay because it is based on your mileage. You can easily reduce your premium by reducing the amount you drive a month.
Off peak hours can be great for some, especially those who drive to work at odd hours such as early in the morning or late at night.
Firstly, the black box itself may costs more than the a usual insurance policy due to its installation costs.
Secondly, if you belong to the category who cover alot of miles just traveling to and from work, this policy could end up costing alot more than traditional policies. On top of that, this could be totally out of control, for example if job circumstances force you to move to much further place.
Notes: The information presented and represented on this site is based on UK 1 day car insurance. Details may vary amongst countries. Please be aware of such.Tweet