Black box insurance is nothing new to drivers – in fact it has been around for nearly a decade.  The principle of it is to lower insurance premiums, but the fines and charges you face, can end up costing you just as much, proving the reality a lot different to the theory for many young drivers.

An investigation by Money Mail has revealed that drivers are being hit with unexpected fines for speeding and changing their policy. The black box is designed to monitor how and where you drive, tracking speed, braking, acceleration, distance travelled and where you have been. If you step out of line once the insurance company will issue you with a warning. Continue to do so and you will begin to be hit with fines. These fines could be as much as £100 for speeding, even if the authorities do not catch you.

There are other potential costs you can be faced with. iKube, which specialises in learner and young driver insurance, charges £100 per night to anyone caught drive outside of the 11pm to 5am curfew hours.  Some companies charge between £30 and £50 if you miss your appointment to have the black box fitted, £30 to £45 for having the wrong documents and £120 to have a new box installed if you change your car.

It’s no surprise that young drivers are attracted to the black box, as standard premiums reach as much as £2,500, and black boxes promise to reward better driving, but drivers need to make sure they check the finer details of the policy documents.

Black box insurance carrier so many fees and charges they need to be made much clearer. Drivers can be drawn in by the promise of lower premiums but can end up paying much more then they initially thought. Moneysupermarket suggests that these policies can save an average of £212 but the benefit could soon be wiped out by lack of concentration or careless driving.

It definitely pays to thoroughly check the small print before taking out a policy. Price shopping and comparing quotes without a black box can also work out just as cost effective, especially if you are able to take out a multicar policy and add 2 experienced named drivers onto your policy so make sure you check out every possible route before taking out your insurance policy.  

- Danielle Wheeler