I slashed my car insurance bill by £250 with little-known policy – it helped pay for my family’s half-term holiday

MOTORISTS are being clobbered with the most expensive car insurance premiums in over a decade, but a little-known policy can save you hundreds.

Savvy mum Kate Tynan, 44, has cut the cost of her premium by £250 thanks to a policy usually favoured by young drivers.

Telematics, or “black box” policies, reward safe motorists for careful driving habits.

And it turns out they’re not just for teenagers ripping up their L-plates – experts we spoke to say they’re a money-saving boon for older drivers, too.

Kate, who lives in Stockport with her business analyst husband Ben Tynan, 46, and two kids Noah, 11 and Martha, nine, told The Sun: “Like a lot of people, I thought black box policies were just for kids. 

“I couldn’t believe it when I saw the quote and even asked the broker if they were sure it was right. 

“I ended up saving £250 and we put the extra cash towards our half-term holiday in Cornwall.”

The average cost of a motor policy has soared by over 20% in the last year to a whopping £657, according to figures from Confused.com’s Car Insurance Price Index.

That’s the highest in 12 years and just £6 off the highest average price on record.

Even loyal drivers have been caught in the price hike with a Confused.com poll discovering over half are hit with more expensive renewal quotes. 

That was the experience of award-winning baker and cake artist Kate, from Stockport.

Besides ferrying her two kids around, she uses her Mini to run her bespoke wedding cake business, Little Button Bakery. 

And when her renewal quote from Esure dropped in April, she was stunned to find it wanted to hike the premium from £532 to £620 – an extra £88 a year.

“It didn’t make sense to me,” she said.

“I’ve been driving since I was 18 and I’ve always had a clean licence, but my insurer wanted £620 to cover me for private and business use. 

“I had a look around on the usual comparison sites, but all the quotes were pretty much the same. 

“There was a small saving with a few, but for the sake of £20 or £30 I didn’t want the hassle of changing insurers.

“I was resigning myself to paying the extra, but had one last look on Compare the Market – and was offered a black box policy with Hastings that was £200 cheaper [at £420]. 

“I couldn’t complete it online so ended up calling Hastings – and the quote actually came down another £50! I couldn’t believe it.”

Kate says she felt unsure at first about having a device in her car that was recording her every move on the road.

“But it’s not like I’m a boy racer tearing around the streets,” she said. 

“And if you think about it, we’ve all got loads of apps on our phones tracking what we’re up to every minute of the day. Why should driving be any different? 

“No one can actually see where I am. It doesn’t put you in any danger.”

Depending on the insurer, policies come with different types of black boxes.

Some are fitted by a professional – for free – often out of sight behind the dashboard or under the bonnet. 

They have a SIM card installed which beams driving data back to the insurer, like a phone sending a text.

Other devices are self-installed, usually by plugging into the lighter socket or the car’s diagnostic port, often beside the steering wheel or in the fuse box. 

A third option – which Kate was offered – relies on a tiny box linked to a mobile phone app.

Kate said: “Maybe I’d have had second thoughts if it was a big, black brick, but it’s a tiny thing about the size of a matchbox which sticks on the windscreen beside the rear view mirror. I hardly know it’s there.

“It links to my phone via Bluetooth – so I have to make sure I have the phone with me when I’m driving, or I get penalised. 

“It scores my driving performance, measuring speed, braking and how smoothly I drive. It also knows if you’re tempted to use your phone while you’re on the road. 

“The idea is to keep your scores in the green. If you mess up and keep going into the red, you get a call from the insurer.”

These gizmos monitor not only how you drive, but where, when and for how long. 

Driving regularly on busy, built up roads at rush hour means you could be assessed at greater risk of having an accident.

It’s the same for making long trips without stopping for a break.

 However, there are big savings to be had and the number of policies in the UK has soared in recent years to almost a million, according to the British Insurance Brokers’ Association.

Figures from Compare the Market (CTM) reveal that for the vast majority – just over 85% – of young drivers in the 17-20 age bracket, black box policies will come in cheaper than standard insurance. 

But they’re still cheaper for over a quarter of 40-49-year-olds, and a third of drivers aged 30-39, too. 

“I do think there’s a perception that these policies are for younger drivers, but the benefits apply to drivers of any age,” said CTM motor insurance expert Julie Daniels.

“If you’re the kind of driver who is only making short, day time trips and you’re not on the road that much, your risk is going to be so low that you could really benefit.”

Julie explained that for the first year of taking out a black box policy, some drivers may not see huge savings over a traditional policy.

“But it’s worth the investment,” she said. “When you renew your premium at the end of the year, if you’re deemed a good driver it’s likely to go down quite a lot – by up to 60%. 

“That’s when you really start to see the difference.”

An esure spokesperson told The Sun: “While we won’t comment directly on Kate’s policy, the individual circumstances of our customers are only a few of the many factors we consider when making pricing decisions.

“There are various inflationary factors at play which have a greater impact on price.

“We are very aware of the financial pressures many customers are facing and will always look to ensure our pricing is as fair and competitive as we are able to make it.”

Is there a catch with black box policies?

So what’s the catch? Well, it all depends on how you drive. 

If you’re tearing around the streets like a Formula 1 driver, you can expect your premium to go up at renewal. 

If your driving is considered dangerous, your insurer could even cancel your policy altogether – making it difficult or altogether impossible to find alternative cover. 

It’s also worth remembering that if you share your car with a named driver, they need to drive it carefully, too – or you’ll be penalised. 

As ever, the advice is to shop around and be honest with yourself about how you use your car. 

A spokesperson for the Association of British Insurers summed it up: “Telematics can reward good driving and could be beneficial to all age groups. If you’re a safe driver you could see lower premiums. 

“But any evidence of dangerous driving could cost you more.

“It’s always best to shop around and make sure you pick a policy based on your needs, not just on price.”