UK DRIVERS could save up to £500 on their car insurance by fitting a black box to their motor.
But the majority of Brits are losing out on the huge savings as they don’t know how the tracking system can benefit them.
A recent study by By Miles found that eight out of ten motorists are unaware they can save hundreds on their annual cover by fitting the gadget to their motor.
A black box is a small telematics device that is fitted to your car that tracks speed, acceleration, braking and turning.
It also records the types of roads you drive on, the time of day you’re behind the wheel and even your distance travelled.
The technology is then used by your insurer to monitor how safe you drive and calculate a premium which is based on your on-road ability, rather than statistics.
What is a black box?
Telematics insurance policies – also known as black boxes – are a great way for drivers to cut premiums.
They use GPS tracking data to know where, when and how fast you’re driving.
The policies are often tied up with an app that provides a feedback score at the end of a journey.
Drive safely and score well and you can be rewarded by even cheaper premiums in the future or other rewards.
The system is commonly used by younger drivers who have just got their licence to help drive down the price of insurance, which is typically high for inexperienced motorists.
But the system is being used by more Brits, with the number of telematics policies doubling in the past three years.
Premiums can come down by an average of 20 per cent if you agree to have one fitted to your motor, according to the study.
The system can be installed for free or around £30 depending on your insurer.
James Blackham, founder of By Miles, said: “Telematics policies offer huge savings for drivers of all ages.
“More experienced drivers often do not appreciate being told how they should drive but are suffering higher premiums as high as £500 a year.”
Another recent investigation revealed millions of Brits overpay £110 in car insurance each year by not shopping around.