What is 'black box' insurance?
This refers to personalised car insurance based on your driving style. It's also known as telematics insurance, smart box insurance, pay-as-you-drive, and usage-based insurance (UBI).
An increasing number of insurers offer a telematics device as a way to lower the cost of your car insurance. The device is fitted in your vehicle, and the way you drive is reported back to your insurer. Responsible, safe driving is rewarded by offering lower premiums. This reflects that you represent less risk to your insurer.