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A third of Brits say they'll look to get 'black box' car insurance to cut costs, ahead of potential changes for motorists in the autumn budget. With rumours of a potential pay-per-mile car tax charge in the November budget, motorists will be looking for ways to cut their expenditure.

That's according to a new study from insurance company Hastings Direct, which found that middle-aged drivers were the most likely to opt for a 'black box', with almost half (40%) saying that the prospect of cheaper insurance would make them switch over. Analysis has revealed that 'black box' insurance, also known as telematics insurance policies, is typically 20% cheaper than a standard comprehensive 'new driver' policy.

This could result in hundreds of pounds of savings for motorists who opt to go for a black box policy, Hasting said. Telematics insurance measures factors such as the speed that motorists drive at, how harshly they brake or accelerate, and whether they use their phone while driving to give them a score. Those who speed or drive erratically will pay more, while those with a high score can pay less for their insurance in the future and could benefit from rewards.

Drivers in Belfast (44%) are the most likely to say that they are considering 'black box' in the future due to the reduced costs involved. Those in Bristol (43%), Nottingham (40%) and London (39%) are also particularly keen on cutting their insurance costs in the coming months.

The survey also found that many Brits falsely believed that 'black box' insurance was more restrictive than it actually is. Hasting said that millions of drivers thought that telematics limits what type of road users could drive on (11%), barred them from driving at certain times of the day (10%) or that going over the agreed mileage would invalidate telematics insurance (14%).

In fact, almost one in ten (7%) thought that a 'black box' measures if they were listening to music or not. Some (6%) even thought that passengers under 25 were not permitted with telematics insurance.

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. "

Hastings Direct surveyed 2,000 people in March 2025.

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