Installing a black box in a car could help drive down insurance costs, although not all drivers would be able to benefit, according to experts.
As more than half of UK drivers experience cost hikes on insurance premiums, installing a black box could help combat prices.
A black box is a small GPS tracking device installed in a car which monitors the ability of a motorist including how often they drive and at what speed.
They are more common for younger drivers but are a telematics tool used by numerous insurance providers to judge any driver's roadworthiness.
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Drivers could make huge insurance savings with a black box
GETTYLiz Hunter, director at Money Expert, explained that insurers use the data to create adriver score, which demonstrates how safe they are behind the wheel.
If someone receives a high score, an insurer will interpret this to mean they are a safe driver. This score can be key when renewing a policy as it could help lower insurance prices.
However, if a driver receives a poor score for their behaviour on the road, they could see their insurance bills jump massively.
The benefit of black box insurance is that it allows drivers to pay for premiums based on driving behaviour, rather than age or location.
Motorists who have previous driving offences can use black boxes to their benefit by demonstrating that their ability has improved over a longer period of time, potentially resulting in a drop in costs.
Hunter stated: "According to the British Insurance Brokers' Association, young drivers typically save around 30 per cent by opting for black box insurance.
"Many providers advertise potential savings of up to 60 per cent on their website, but this is likely to be the best-case scenario, for those with the highest driving scores."
Britons who are found to consistently engage in "risky driving" could be punished with high premiums because of the black box data.
Meanwhile, drivers who regularly slam down on the brakes oraccelerator could see their driving score affected.
Looking at the worst-case scenario, Hunter warned: “If your driving is considered dangerous, your insurer could cancel your policy altogether. This could also make it difficult to gain coverage from another provider.”
When taking out any car insurance policy, drivers are asked to estimate their annual mileage with lower mileage rates often leading to lower premiums.
The problem with this, Hunter flagged, is that if a driver exceeds the mileage estimate through data from the black box, insurers can use the information to charge more.
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Some experts warn that drivers could save up to 60 per cent
GETTYHunter added that driving at night with a black box is risky as it could negatively affect the overall score, with Hunter telling drivers to consider whether they are a safe driver.
If they are, then black box insurance could save them more money in the longer-term.