One in three motorists are considering switching to 'black box' - or telematics - car insurance due to concerns over a potential pay-per-mile car tax in the UK. The Labour Party government has received recommendations from several think tanks to implement a pay-per-mile car tax system.

However, Hastings Direct, a car insurance provider, reports that half of middle-aged motorists would fit telematics devices to reduce costs amid worries about a pay-per-mile scheme. Some think tanks suggest Chancellor Rachel Reeves should introduce a 9p charge.

Jennifer Hammond, head of brand and marketing at Hastings Direct, said: "Telematics insurance can be useful for drivers to prove they can drive safely and it's great to see older drivers exploring this as an option for their insurance policy.

"As the cost of living continues to rise, it's interesting that more motorists are considering telematics insurance to help save money on their car insurance."

Black box insurance utilises technology to help motorists reduce costs and encourage safe driving. A compact telematics device, also known as a black box, is employed to monitor your driving behaviour including speed and braking patterns, reports Birmingham Live.

This information enables insurers to modify your premiums according to how safely you drive, potentially reducing your costs if you're a cautious driver.

This insurance provides greater control over what you pay and incentivises safe driving practices. It's favoured by drivers who encounter high premiums.

The comprehensive data from the telematics device can often aid in swiftly settling claims if an accident happens, offering extra peace of mind on the road. The information can also safeguard you against fraudulent claims from other motorists.

Securing black box cover could help you reduce your car insurance expenses, as the cost will be determined by your driving behaviour rather than presumptions about aspects like your age.

Data from MoneySupermarket, featured on BBC and ITV celebrity Martin Lewis' website, reveals that new drivers save an average of £379.50 annually with a telematics policy.

Pay-per-mile car tax leaves drivers considering major black box 'switch' - Yorkshire Live