Apr 17, 2023

Do Black Boxes Lower Insurance Premiums?

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Black boxes are a popular topic amongst drivers and insurance companies alike, in this blog we’ll be taking a look at their benefits and asking do they really lower insurance premiums?

What is a Black Box?

a black box is a device that is installed in a vehicle to record data related to the vehicle's operation and performance.

The black box, also known as an Event Data Recorder (EDR), is typically located under the dashboard or seat, and collects information such as speed, braking, acceleration, and other metrics that can help investigators reconstruct events in the event of an accident.

The data collected by black boxes can be used to determine the cause of accidents, identify safety issues with particular vehicles, and provide insights into driver behaviour.

In recent years, black boxes have become more commonly used by insurance companies as a tool for assessing driver risk and determining insurance premiums.

It's important to note that the use of black boxes has raised some privacy concerns, as the data collected can provide a detailed picture of a driver's behaviour and location. However, most black boxes are designed to collect data only in the event of a crash, and drivers typically have the ability to opt out of black box data collection if they choose.


In some cases, the use of black box devices in cars can lower insurance premiums.

Drivers who demonstrate safe and responsible driving habits may be eligible for lower insurance premiums, as determined by the data collected by the black box. For example, drivers who consistently drive within the speed limit and avoid sudden acceleration or harsh braking may be considered lower risk and therefore may receive lower premiums.

However, it's important to note that the use of black boxes is not always guaranteed to result in lower premiums, and in some cases, premiums may actually increase if the data collected indicates that the driver is engaging in risky driving behaviour.

Additionally, some drivers may be uncomfortable with the idea of having their driving behaviour constantly monitored, and may choose to forgo the use of black boxes even if it means paying higher premiums.

Ultimately, the decision to use a black box is up to the individual driver and their preferences and priorities.


Telematics technology is the use of telecommunications and informatics to monitor a vehicle's behaviour in more accurate and greater detail.

Telematics systems gather GPS tracking and vehicle specific data to transfer via means including- cellular network, satellite communication, mobile data, and GPRS to a central server. The data collated is then analysed and transcribed into specific metrics that can be easily interpreted via our Fleetsmart app or website.

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Benefits of Fleetsmart Telematics

Improved Safety

One of the main benefits of using a black box is that it can improve safety by providing valuable insights into how a system or device is functioning.

Enhanced Performance

Black boxes can also help improve the performance of a system or device by identifying areas where improvements can be made..

Better Maintenance

By monitoring and recording data related to the performance of a system or device, a black box can also help with maintenance. This data can be used to identify potential issues before they become serious problems, allowing for proactive maintenance and reducing the risk of costly repairs.

Accurate Record-Keeping

Black boxes provide accurate and detailed data about the performance of a system or device, which can be useful for record-keeping purposes. This data can be used to track trends and identify areas where improvements can be made.

Should I Use Telematics?

It’s proven that Telematics can help boost productivity, employee efficiency and fleet operations as a whole; all the while reducing idling, hazardous driver behaviour, fuel consumption and vehicle maintenance costs.

Fleetsmart offer a range of the latest Telematics technology at extremely cost effective prices with scalable options starting from just £6.95 per vehicle per month. With a clear multitude of performance enhancing and money saving reasons to implement telematics to your vehicles, now might be the time to upgrade a vehicle.