This guide is written for UK policyholders who want a complete, independent answer, without scrolling past sales banners. We do not sell black box insurance and do not receive commission from any insurer named below.
Below we walk through the underwriting fundamentals, typical UK price ranges, named exclusions, and questions to ask before binding cover. Every figure is sourced.
The short answer, expanded
Black box insurance — also called telematics insurance — installs a device in your car or uses a smartphone app to monitor your driving behaviour. The data collected (speed, braking, cornering, time of day, and mileage) is used to price your renewal and may adjust premiums mid-policy for safe or unsafe driving. For young drivers aged 17–25, black box policies typically save 20–30% on standard market rates and provide the fastest route to building a meaningful claims history. In the rest of this guide we explain why, and the conditions under which the answer changes.
What's actually covered
Standard UK policies in this category cover sudden, accidental, and unforeseen events. Insurers distinguish between indemnity and new-for-old, read the schedule carefully.
- Third-party injury and property damage you cause to others
- Defence costs incurred to investigate or defend a claim
- Court-awarded compensation and agreed settlements
UK premium ranges, by profile
| Profile | £1m limit | £5m limit | £10m limit |
|---|---|---|---|
| Sole trader, low-risk | £60 | £120 | £220 |
| Sole trader, medium-risk | £100 | £180 | £310 |
| SME (5 staff) | £140 | £240 | £400 |
| SME (25 staff) | £180 | £300 | £490 |
