iKube Black Box Car Insurance Explained

Many young drivers continue to find it hard to afford the cost of running a car. Indeed, they face some of the highest insurance premiums in the UK. GPS technology used in 'black box'' insurance can help ensure that young people get a competitive premium based on how they drive not their age or experience. This article helps explain how.

It's no secret that younger drivers are more likely to have a road accident; it's one of the reasons that drivers of this age and experience suffer much higher premiums. However, it is possible to look at other factors by paying attention to how they drive individually. This means young drivers pay a premium that matches the risk they present.

Insurer research shows that young drivers are more at risk of being involved in a serious accident after 11pm. Shouldn't it be possible to offer discounts to drivers who don't use their car during these times, particularly in the early period of a driver's experience? Telematics insurance policies, such as iKube, use GPS technology to identify if a car is in motion between 11pm and 5am, statistically the high-risk time.

With the same GPS technology, it is possible to detect acceleration, speed, braking, types of roads driven, amount of use etc. Therefore, the level of risk the driver poses to themselves and others around can be monitored. At the time of renewal, substantial behavioural discounts can be added and safe drivers can even see the night time curfews completely lifted. iKube's telematics technology can help young drivers secure a premium which is far less expensive than others on the market and offers them a chance to have their own insurance policy, in their own car, all at a low cost. In addition, iKube now also reviews driving for the three months after the driver has passed their test and can remove the curfew for the best drivers before renewal.

Here are some of the common questions asked about iKube.

  • Is it expensive for the first year?

  • For learner drivers iKube can be very competitive in terms of cost - in many cases iKube can discount significantly off a standard car insurance policy. However, as with any motor policy it's dependent on other factors - such as where the policyholder lives and levels of cover required.

  • Does a renewal for a 'safe driver' make their renewal premium competitive?

  • Yes - for those policyholders who drive more safely we can offer competitive discounts at renewal. In fact, 75% of those who take out car insurance with iKube are rewarded with additional behavioural related savings at renewal. In addition to this 44% of all young drivers who take out iKube have their curfew lifted and a further 15% are also offered the opportunity to remove the late-night driving curfew for a sensible additional premium at renewal based on how well they've driven.

  • What are the restrictions?

  • The only real restriction on the policy is late-night driving. iKube encourages young drivers not to drive between 11pm and 5am. If they have to drive during the red hours they could incur a charge of up to £100 that is effective for the whole period (i.e. they will only be charged once per day). The future premiums ultimately may be affected by the customer's driving behaviours so it is in everyone's interest that the car is driven well. A breakdown of charges is as follows.

    23.00-23.29 - £50

    23.30-23.59 - £75

    00.00-04.59 - £100

  • What are the age limits?

  • The policy has been designed to benefit young and learner drivers aged 17 - 25. However older provisional drivers can also consider this policy.

  • Can you insure any car on the scheme?

  • Whilst we try to cover a wide-range of cars on the scheme iKube is most competitive for cars with a small engine size (usually between 1L and 1.4L). Typically, cars like the Vauxhall Corsa, Ford Ka or the Nissan Micra tend to enjoy lower premiums than their bigger cousins.

  • Is the GPS equipment free?

  • The cost of the iKube black box (which includes fitting and annual monitoring charge) is included in the overall quotation.

Case study – Abby Fearon

“The fact that they don’t increase your premium once you pass your test was a deciding factor for us choosing iKube.

iKube young driver

Abby, from Romsey in Hampshire, started learning to drive at 17 and soon passed her test. Abby’s parents decided to buy their daughter a car for her 18th birthday but wanted this to be a surprise. 

Her mum, Gail, started looking around for a car but she wanted to get insurance quotes on the car before purchasing it to make sure that the premiums were reasonable for a learner driver.

“I started off looking on comparison sites online but found them irritating as each time I input the information, it was inconsistent with what was coming back. I spent weeks trying to figure out the best deal and because you don’t get to speak to anyone, you don’t get detailed information back.

“A friend of Abby’s had a black box insurance policy and told me how much he paid, so I decided to Google ‘Black box insurance’ and iKube popped up. I gave them a call and they were so informative; they were brilliant! They informed me that they wouldn’t increase her premium once she passed her test so we knew what the total cost would be for the full year with no nasty surprises.

“As I was looking around for a car, I was calling for quotes on certain cars and quickly built up a rapport with one of the sales team. He was so helpful and I was able to ring him up when I was looking at a car and get an insurance quote really quickly.”

Gail spent a few weeks looking for cars and actually did 36 separate insurance quotes with iKube before finding the right car for Abby! Abby was obviously delighted with her present and wasn’t concerned with having a black box insurance policy or a curfew.

“I work at a local pub and a local supermarket so I was able to drive to and from work outside of the curfew hours so it didn’t affect my life. Also a couple of my friends have black box insurance policies so I knew what to expect,” said Abby.

Gail thought that the curfew was an added benefit for the peace of mind for parents. She explained: “When you’ve got a young driver, the last thing you want is them being out all hours driving around so it’s a great safety measure. The fact that they have to stick to the speed limits is also really reassuring. It’s a really obvious safety precaution.”

Abby is one of iKube’s best drivers and had her curfew lifted early, which means she is free to drive at any time. 

This is a marketing article by Towergate Insurance.

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