A new study has found that a third of Brits are considering switching to ‘black box’ car insurance in a bid to cut their costs, as rumours of a pay-per-mile car tax charge continue to swirl
A third of Brits are considering ‘black box’ car insurance to slash costs, in light 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 likely to go for a ‘black box’, with nearly half (40%) stating that the prospect of cheaper insurance would tempt them to switch. Analysis shows that ‘black box’ insurance, also known as telematics insurance policies, are 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, says Hastings. Telematics insurance takes into account factors such as driving speed, how abruptly they brake or accelerate, and whether they use their phone while driving to assign them a score.
Those who speed or drive erratically will pay more, while those with a high score can pay less for their insurance in the future and could even earn rewards.
Drivers in Belfast (44%) are the most likely to say that they are contemplating ‘black box’ in the future due to the lower costs involved. Those in Bristol (43%), Nottingham (40%) and London (39%) are also particularly eager to trim their insurance costs in the upcoming months.
A recent survey has revealed that many Brits 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%) even 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 people in March 2025.