A third of Britons are considering ‘black box’ car insurance to slash costs, in anticipation of potential changes for drivers in the autumn budget. With whispers of a possible pay-per-mile car tax charge in the November budget, motorists are on the hunt for ways to reduce their outgoings.
This is according to a fresh study from insurance firm Hastings Direct, which discovered that middle-aged drivers are the most inclined to opt for a ‘black box’, with nearly half (40%) stating that the prospect of cheaper insurance would persuade them to switch. Analysis has shown that ‘black box’ insurance, also known as telematics insurance policies, is typically 20% less expensive than a standard comprehensive ‘new driver’ policy.
This could lead to savings of hundreds of pounds for drivers who choose a black box policy, according to Hastings. Telematics insurance assesses factors such as driving speed, braking and acceleration severity, and mobile phone usage while driving to assign a score.
Those who speed or drive erratically will face higher charges, while those with high scores can expect lower future insurance costs and may even receive rewards.
Belfast drivers (44%) are the most likely to consider ‘black box’ in the future due to the associated cost reductions. Those in Bristol (43%), Nottingham (40%) and London (39%) are also particularly eager to trim their insurance expenses in the upcoming months.
A recent survey has revealed that many Britons have misconceptions about ‘black box’ insurance, believing it to be more restrictive than it actually is. According to Hastings Direct, millions of drivers mistakenly believe that telematics restricts the type of roads they can use (11%), prohibits them from driving at certain times (10%), or that exceeding the agreed mileage would invalidate their insurance (14%).
Surprisingly, nearly one in ten (7%) thought that a ‘black box’ could detect if they were listening to music, while some (6%) believed that passengers under 25 were not allowed with telematics insurance.
Jennifer Hammond, head of brand and marketing at Hastings Direct, said: “Telematics insurance can be useful for drivers to prove they can drive safely and it’s great to see older drivers exploring this as an option for their insurance policy. As the cost of living continues to rise, it’s interesting that more motorists are considering telematics insurance to help save money on their car insurance.”
The survey was conducted by Hastings Direct, polling 2,000 individuals in March 2025.