With a black box insurance policy, the device is an invisible passenger on every drive you take, recording data about your driving. Speed is one metric the black box records and your insurer considers when setting your premiums. Sticking within the speed limit can help you earn discounts. But what happens if your black box catches you speeding?
The impact on your car insurance depends on how frequently you speed and how much you exceed the speed limit by.
First, a consolation: we’ve all inadvertently driven over the speed limit, looking down at our speedometer to discover we’re actually driving 75mph on a motorway or not realising when the speed limit falls on a road.
Occasionally exceeding the speed limit by small amounts isn’t likely to change your insurer’s assessment of your overall driving. Your speed is just one factor that black boxes measure and that influences your premiums. Insurers also consider your acceleration, braking, turning, and the times you drive.
But if you’re frequently exceeding the speed limit or driving at unsafe speeds, your insurer will take notice. You won’t qualify for the discounts for good driving that make black box insurance policies worthwhile. In fact, regular speeding may push up your premiums. But before your premiums rise, your insurer will likely issue you a warning about your driving, urging you to take more care.
Warnings and higher premiums are likely the only results of speeding with a black box. But if your speeding is particularly extreme, your insurer may cancel your policy, on the grounds that you’re breaching the terms and conditions by driving recklessly.
With a cancelled insurance policy on your record, you’ll struggle to find affordable cover in the future. Insurers’ policies about speeding and policy cancellation vary, but you’ll likely be warned about your speeding before the insurer axes your cover.
Some people fear that their insurer will report their speeding to the police, earning them a fine. These worries are baseless. Insurers will never hand over information gathered by your black box unless the police specifically request it in relation to a serious crime.