What is black box car insurance?
If you’re a new driver, but find car insurance too expensive, then how about taking out black box insurance?
The Cazoo editorial team
Published on 06 February 2026 | 1 min read
When it comes to buying your first set of wheels, the biggest hurdle to climb is car insurance.
Car insurance is a legal requirement here in the UK and it’s important to make sure that you get the best deal when you’re a new driver to make owning a car more affordable.
So, what about black box insurance? Black box insurance is a great solution for brand-new drivers to get behind the wheel of a car, as it can help lower insurance premiums and make it a more cost-effective way of starting your driving career.
But, before you go out to buy a car, there are several things you need to know about black box insurance: What is it? What are the benefits? Are there downsides? And, is it a necessity to have it if you’re a new driver?
We’ve compiled a list of all the main factors to consider if you’re thinking of investing in black box insurance.
What is black box insurance?
Black box, or telematics insurance, consists of a little GPS tracking device which is fitted into your car and can be located in the engine bay, glovebox or in the boot.
The device is designed to record and track the driver’s speed, acceleration, cornering and how frequently the vehicle is used. The black box then calculates the data and sends the information back to the insurance provider.
Its purpose is to help drive down high insurance premiums for young drivers, as it gives them a good opportunity to demonstrate to their provider good driving habits.
Depending on the insurance company, certain black box insurance policies can reward drivers with discounts, money-off vouchers and cashback if they continue to drive smoothly, consistently and safely.
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What are the benefits?
Having a black box fitted to your vehicle is the perfect tool to help lower your annual insurance premiums.
It encourages safer driving as the black box will pick up on poor driving habits like harsh braking, excessive speed and poor cornering - the safer you drive, the cheaper your insurance will be.
Furthermore, black box insurance helps drivers use their vehicle more efficiently and safely, which means there is less wear being put on the car’s components, allowing for parts to last longer and helping keep maintenance costs to a minimum.
As a black box is recorded using GPS data, it’s also a great tool to have if you’re unfortunate enough to have your vehicle stolen. The tracking device can alert your insurance company that you’re not the one behind the wheel, and it can help locate where the car has been taken.
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What are the downsides?
There’s no guarantee that a black box is going to reduce your insurance premiums, especially if you pick up a lot of bad driving habits, such as speeding and harsh braking.
Many insurance companies will penalise new drivers with higher insurance costs if the black box data reports back any dangerous driving recordings.
Some black box insurers can also limit drivers from using their vehicle at certain times of the day, and there can be mileage limitations, too.
Owning your first car is your gateway to freedom; however, black box insurance can restrict drivers with limited mileage allowances and nighttime driving.
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Should you take out black box insurance?
You should definitely take out black box insurance if your insurance premiums as a new driver are too high.
Having a black box fitted to your car doesn’t mean it will be monitoring your driving forever; it’s just a great tool to have for the first couple of years to help reduce your insurance costs.
Also, as a new driver, you need experience on the road to make you a safe and responsible road user, and a black box is a great way to improve how you drive on a day-to-day basis.
After your insurance has dropped to a more affordable rate, your insurance provider can remove the black box from your vehicle.
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If you’re a new driver, do you need a black box?
As a new driver, it’s not mandatory to have a black box fitted to your vehicle, especially if you’re lucky enough to be in a position to be able to afford higher insurance premiums.
By not having a black box fitted, this gives you the freedom to drive at any time of the day, and it allows you to cover as many miles as you want.
However, we think it’s a good idea to invest in black box insurance as it ticks a lot of boxes for young drivers from a financial, safety and experience point of view.
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