Compare insurance quotes for 25 year old drivers

Affordable car insurance for 25 year old drivers

By the time you reach 25, you may have a few years' driving experience under your belt and be starting to see your car insurance costs fall.
Car insurance for 25 year olds is generally cheaper than it is for those in their teens or early twenties, especially if they've managed to build up a few years' worth of No Claims Discount, but premiums can still be significant.
Twenty five is an age where you may be starting to think about saving for the future, so it makes sense to shop around for your car insurance to make sure you're getting the best deal. MoneySupermarket's car insurance comparison tool can help you to find cheap quotes on the cover you need.

Why car insurance for 25 year old drivers is expensive

The cost of your car insurance is a reflection of how likely the insurer thinks you are to make a claim. The level of risk you pose is determined by a number of factors, not least your age and experience.
Though statistics show drivers aged 25 are less likely to be involved in an accident than a 17 year old driver, they're still more likely to make a claim than older, more experienced drivers. Insurers weight car insurance premiums according to statistics like this.
Inevitably, this means younger, less experienced drivers are penalised with higher premiums.
But it's not just young drivers being squeezed by the cost of car insurance as it is relatively expensive across the board. There are also factors which continue to inflate the cost of cover for all age groups.
A rise in the number of personal injury claims in recent years, including fraudulent claims where someone falsely claims for whiplash or other injuries following a crash are pushing up everyone's premiums.
Car insurance is a legal requirement in the UK, but some drivers continue to flout the law by driving uninsured. The Association of British Insurers estimates that this illegal activity adds around £40 a year to the average premium, but new regulations which came into force this year aim to deal with the problem.

New car insurance rules

The new Continuous Insurance Enforcement (CIE) regulations mean that unless your vehicle is registered as off the road with a SORN declaration, it must be insured.
As the Motor Insurers' Bureau (MIB) and the DVLA are working together to clamp down on uninsured vehicles by comparing DVLA records against the Motor Insurance database, you should be careful not to get caught out.
Anyone who breaches the new regulations will get an initial warning, followed by a fixed penalty of £100 if they do not comply with the warning's advice. Worse still, if the driver does not take action, their vehicle can be clamped, seized and disposed of and a court prosecution with a maximum fine of £1,000 can be imposed.

The ECJ's 'gender ruling'

Traditionally, there's always been a difference in prices for men and women, but a new ruling will put an end to this in 2012.
A ruling by the European Court of Justice in 2011 means that as of December 2012, insurers won't be able to charge drivers different amounts for cover based on whether they are male or female.
It remains to be seen how much of an effect the ruling has, but estimates say that car insurance for women will rise by up to 30%, and fall by around 10% for men.

Get cheap car insurance for 25 year old drivers

MoneySupermarket data consistently shows that drivers can save money on their car insurance by shopping around for cheapest quotes. Beyond comparing prices, there are still some other things you can do to reduce your costs.
For instance, adding an older, more experienced driver to the policy as a named driver can help to lower your premium because in theory, it cuts the amount of time you'll spend behind the wheel.
You must not be tempted to add them as the main driver and yourself as a named driver to get a cheap quote though. This is called 'fronting', is illegal and can invalidate your insurance if discovered.
Increasing your excess can lower your premiums, but you must set it to amount you'll genuinely be able to afford in the event of a claim.
Safe and conscientious driving is one of the best ways to keep premiums down, as it'll earn you a No Claims Discount (NCD). Eventually, an NCD can cut your premiums by as much as 60%, so it's well worth taking your time and taking care behind the wheel.

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Compare insurance quotes for 25 year old drivers

Affordable car insurance for 25 year old drivers

By the time you reach 25, you may have a few years' driving experience under your belt and be starting to see your car insurance costs fall.
Car insurance for 25 year olds is generally cheaper than it is for those in their teens or early twenties, especially if they've managed to build up a few years' worth of No Claims Discount, but premiums can still be significant.
Twenty five is an age where you may be starting to think about saving for the future, so it makes sense to shop around for your car insurance to make sure you're getting the best deal. MoneySupermarket's car insurance comparison tool can help you to find cheap quotes on the cover you need.

Why car insurance for 25 year old drivers is expensive

The cost of your car insurance is a reflection of how likely the insurer thinks you are to make a claim. The level of risk you pose is determined by a number of factors, not least your age and experience.
Though statistics show drivers aged 25 are less likely to be involved in an accident than a 17 year old driver, they're still more likely to make a claim than older, more experienced drivers. Insurers weight car insurance premiums according to statistics like this.
Inevitably, this means younger, less experienced drivers are penalised with higher premiums.
But it's not just young drivers being squeezed by the cost of car insurance as it is relatively expensive across the board. There are also factors which continue to inflate the cost of cover for all age groups.
A rise in the number of personal injury claims in recent years, including fraudulent claims where someone falsely claims for whiplash or other injuries following a crash are pushing up everyone's premiums.
Car insurance is a legal requirement in the UK, but some drivers continue to flout the law by driving uninsured. The Association of British Insurers estimates that this illegal activity adds around £40 a year to the average premium, but new regulations which came into force this year aim to deal with the problem.

New car insurance rules

The new Continuous Insurance Enforcement (CIE) regulations mean that unless your vehicle is registered as off the road with a SORN declaration, it must be insured.
As the Motor Insurers' Bureau (MIB) and the DVLA are working together to clamp down on uninsured vehicles by comparing DVLA records against the Motor Insurance database, you should be careful not to get caught out.
Anyone who breaches the new regulations will get an initial warning, followed by a fixed penalty of £100 if they do not comply with the warning's advice. Worse still, if the driver does not take action, their vehicle can be clamped, seized and disposed of and a court prosecution with a maximum fine of £1,000 can be imposed.

The ECJ's 'gender ruling'

Traditionally, there's always been a difference in prices for men and women, but a new ruling will put an end to this in 2012.
A ruling by the European Court of Justice in 2011 means that as of December 2012, insurers won't be able to charge drivers different amounts for cover based on whether they are male or female.
It remains to be seen how much of an effect the ruling has, but estimates say that car insurance for women will rise by up to 30%, and fall by around 10% for men.

Get cheap car insurance for 25 year old drivers

MoneySupermarket data consistently shows that drivers can save money on their car insurance by shopping around for cheapest quotes. Beyond comparing prices, there are still some other things you can do to reduce your costs.
For instance, adding an older, more experienced driver to the policy as a named driver can help to lower your premium because in theory, it cuts the amount of time you'll spend behind the wheel.
You must not be tempted to add them as the main driver and yourself as a named driver to get a cheap quote though. This is called 'fronting', is illegal and can invalidate your insurance if discovered.
Increasing your excess can lower your premiums, but you must set it to amount you'll genuinely be able to afford in the event of a claim.
Safe and conscientious driving is one of the best ways to keep premiums down, as it'll earn you a No Claims Discount (NCD). Eventually, an NCD can cut your premiums by as much as 60%, so it's well worth taking your time and taking care behind the wheel.

Resources

• Print this page now
• Contact us for more information

Continue

More tips to help you save on your car insurance

Car Insurance Advice

Where there is a car, there is almost certainly a car insurance policy. But just as there are different types of car, so there are different types of car cover.
If you drive a cheap runabout only at the weekend, you will need a different policy from your neighbor who commutes to the office in an executive saloon.
But whatever car we drive, we all need advice on the best motor policy with their essentially being three different types of car insurance from which motorists can choose:

The three different car insurance types

Third party car insurance cover is the legal minimum requirement and is the most basic policy. Third party insurance pays out if you damage another person or their property, but does not cover your own car. So, if you smash into the back of another car, you cannot claim for any damage to your own vehicle.
Third party fire and theft is the next level up from this; providing the same levels of cover afforded through third party car insurance but also insures your own car against loss or damage by theft or fire.
Then there is fully comprehensive car insurance, which offers maximum coverage to you and your vehicle.
Most people assume that third party insurance is cheaper than comprehensive cover. Well, it makes sense that the premiums would be lower if the protection is more limited. But these days you can often buy a comprehensive policy for the same price or only slightly more than third party insurance. So it is always worth comparing prices on different types of policy.
To find out more about the different levels of cover, visit our car insurance policy types page.

Don't be tempted to drive uninsured

Whether you opt for third party or comprehensive, car insurance isn't cheap. The average policy now costs more than £900 a year, according to figures from the AA. It is therefore easy to understand why some of us might be tempted to drive without insurance cover in an attempt to save money. However, this would be a mistake - and it could prove costly.
The government recently introduced rules to crack down on uninsured motorists, known as Continuous Insurance Enforcement (CIE). The rules basically mean that if you tax your car, you must also insure the vehicle, even if it is sitting idle in your garage. Your car is exempt only if it has been declared off the road with a Statutory off Road Notification (SORN) from the DVLA. Anyone caught flouting the rules will have to pay a fine and could face court action.

Where are you covered?

Motor insurance does not only cover your car in the UK, but also often insures the vehicle if you drive in Europe. But you should pay particular attention to the policy details if you plan to take your car abroad as you might only have the minimum legal level of cover. In other words, a fully comprehensive car insurance policy in Britain might only cover third party damage in France for instance. Most policies also only cover motoring abroad for a limited number of days, typically up to 90 a year. If your existing policy does not provide adequate cover for motoring abroad, you can usually buy additional short term insurance to cover travel to other countries.
There is more advice on driving abroad on our European car insurance page.

What are you covered for?

It is a good idea to check whether any policy includes breakdown cover, which can be a lifeline if you are motoring abroad. European breakdown cover is not automatic, even if it is a benefit of your UK policy. 

The impact of age

Young drivers often struggle to find an affordable car insurance policy because they pay higher premiums than the average motorist. The higher premiums are not a result of some ageist conspiracy. Instead, they are the result of statistics. The figures show that young drivers are more likely to be involved in an accident and are therefore more likely to make a claim.
Young drivers can often lower their premium if they add an older, more experienced driver to their policy - perhaps mum or dad. The insurer is comforted by the presence of a motorist who has some miles on the clock, and so is happy to cut the cost of cover. But be careful. You should not put your mum or dad down as the main driver of the policy if they use the car only occasionally as this is a tactic known as fronting and is deemed illegal.

Why the car you drive matters

Your choice of car can also affect your premiums - a souped up Ferrari will be more expensive to insure than a Ford Fiesta. So it is worth checking a car's insurance rating before you buy.
Every car manufactured in the UK is put into one of 50 car insurance groups, based on a number of factors including its engine size and the likely cost of repairs. The lower the car insurance group; the lower the likely cost of cover.
You can find more details on this on our car insurance groups page.

No claims discount

Claims are costly for insurers so one of the best ways to cut your car insurance premium is to build up a no-claims bonus or discount. Most insurers reward careful drivers with a discount - and it can add up. If you can manage five consecutive claim free years, you could earn a discount of up to 75% in some cases, although the size of discount varies between insurers.
The main driver usually earns the no-claims bonus, but some policies also allow a named driver to accumulate a discount, which could reduce the cost of cover when they eventually buy their own insurance.
Motorists can often pay an extra premium to protect their no claims discount. They can then usually make a certain number of claims within a year without forfeiting their bonus. Although it costs more to protect your no-claims discount, the price is often worth paying. You can read more about the no claims discount and its effect on your premiums on our car insurance no claims bonus page.
There are a number of other ways that motorists can bring down the cost of car insurance cover, including agreeing a bigger voluntary excess and driving fewer miles. For more ideas on how you could reduce the cost of your premiums, take advantage of our money saving tips.

What if you have an accident?

If you have to make a claim on your car insurance policy, you have probably been involved in an accident. So it's not going to be pleasant or easy. You are likely to be shaken and confused, possibly even hurt. Of course, if anyone has been injured, then you should call 999. You should also contact the emergency services if the other driver leaves without stopping.
Try to keep calm and get the names, addresses and telephone numbers of anyone involved, including any witnesses. Try also to note down as many details of the incident as possible, including the cars involved, the date and the time.
It's a good idea to sketch out how the accident occurred while it is fresh in your mind - and take photographic evidence on your mobile phone if possible. Never admit liability for an accident at the scene or offer to pay for any damage which has been caused.
And contact your insurer as soon as possible because there is often a time limit on claims. The insurer will then process the claim and arrange for an assessor to come and look at the vehicle.
It is important to give as much information as possible to the insurer - and always to be honest. If you fail to disclose any relevant details or if you lie about a claim, you could invalidate the policy.

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Compare business car insurance quotes

Insuring your car for business use

Do you commute to the same office every day and work from 9am to 5pm? Some people stick to the traditional work pattern, but many jobs these days are more flexible and varied. You might, for example, visit clients around the country one or two days a week. Maybe you run your own mobile hairdressers, or you are a care worker who regularly visits people at home.
If you are one of a growing number of people who drive their own car for business purposes, you need to make sure that you have appropriate motor insurance. Most standard policies cover the car only for social, domestic and pleasure use - so visiting friends and family or running the kids around. Many also include commuting to and from one place of work. But anything else and you need a different level of cover.
Business car insurance is essential if you use your car for work. It is typically more expensive than standard car insurance because you will probably drive more miles and at busier times and so are more likely to make a claim. But don't be tempted to stint on cover or lie about your car usage. If you don't take out appropriate insurance, you can invalidate your policy and the insurer can refuse to pay out in the event of an accident.

Picking the right business car insurance policy

Insurers will want the answers to a number of key questions when you apply for business car insurance, as for standard motor cover. For example, your age and postcode, the make and model of the car, and your no claims history. They will also ask about the nature of your business, the amount of time you spend behind the wheel and a rough estimate of your work-related mileage.

There are various different types of business car insurance. Private and occasional business use covers the main driver or their spouse who only occasionally have to drive a car for work. The vehicle is not registered in the name of the business and it must not be essential to the job.

Private and business use policies are a step up. They offer broadly similar cover, but the vehicle can be registered to a business and the policy will cover any driver.

If driving is a permanent aspect of your job, perhaps if you are a travelling salesman, you need a commercial travelling policy. You will probably pay a higher premium on your commercial car insurance because you will be considered to be a bigger risk to the insurer as you are likely to accumulate more miles on the clock each year.

It's important to be clear about the different types of policy and to find the right level of cover so that you don't drive without appropriate insurance. 

Find cheap business car insurance quotes

Business car insurance prices can still be a significant expense. It is therefore important to make sure that you do all that is possible to get the cheapest premiums available.
The make and model of your car can have a big impact on the cost of cover, so if you are buying a new vehicle, check out the car insurance group at www.thatcham.org. Cars in lower insurance groups generally pay lower premiums.

You should be able to negotiate a cheaper business car insurance quote by agreeing on a mileage limit. Just make sure the limit is feasible or you could come unstuck.

If you fit your car with approved security devices, such as an alarm or immobiliser, you should get a discount on your premiums. Try also to keep your car in a locked garage or secure business premises overnight.

Continue

Compare business car insurance quotes

Insuring your car for business use

Do you commute to the same office every day and work from 9am to 5pm? Some people stick to the traditional work pattern, but many jobs these days are more flexible and varied. You might, for example, visit clients around the country one or two days a week. Maybe you run your own mobile hairdressers, or you are a care worker who regularly visits people at home.
If you are one of a growing number of people who drive their own car for business purposes, you need to make sure that you have appropriate motor insurance. Most standard policies cover the car only for social, domestic and pleasure use - so visiting friends and family or running the kids around. Many also include commuting to and from one place of work. But anything else and you need a different level of cover.
Business car insurance is essential if you use your car for work. It is typically more expensive than standard car insurance because you will probably drive more miles and at busier times and so are more likely to make a claim. But don't be tempted to stint on cover or lie about your car usage. If you don't take out appropriate insurance, you can invalidate your policy and the insurer can refuse to pay out in the event of an accident.

Picking the right business car insurance policy

Insurers will want the answers to a number of key questions when you apply for business car insurance, as for standard motor cover. For example, your age and postcode, the make and model of the car, and your no claims history. They will also ask about the nature of your business, the amount of time you spend behind the wheel and a rough estimate of your work-related mileage.

There are various different types of business car insurance. Private and occasional business use covers the main driver or their spouse who only occasionally have to drive a car for work. The vehicle is not registered in the name of the business and it must not be essential to the job.

Private and business use policies are a step up. They offer broadly similar cover, but the vehicle can be registered to a business and the policy will cover any driver.

If driving is a permanent aspect of your job, perhaps if you are a travelling salesman, you need a commercial travelling policy. You will probably pay a higher premium on your commercial car insurance because you will be considered to be a bigger risk to the insurer as you are likely to accumulate more miles on the clock each year.

It's important to be clear about the different types of policy and to find the right level of cover so that you don't drive without appropriate insurance. 

Find cheap business car insurance quotes

Business car insurance prices can still be a significant expense. It is therefore important to make sure that you do all that is possible to get the cheapest premiums available.
The make and model of your car can have a big impact on the cost of cover, so if you are buying a new vehicle, check out the car insurance group at www.thatcham.org. Cars in lower insurance groups generally pay lower premiums.

You should be able to negotiate a cheaper business car insurance quote by agreeing on a mileage limit. Just make sure the limit is feasible or you could come unstuck.

If you fit your car with approved security devices, such as an alarm or immobiliser, you should get a discount on your premiums. Try also to keep your car in a locked garage or secure business premises overnight.

Continue

More tips to help you save on your car insurance

Car Insurance Advice

Where there is a car, there is almost certainly a car insurance policy. But just as there are different types of car, so there are different types of car cover.
If you drive a cheap runabout only at the weekend, you will need a different policy from your neighbor who commutes to the office in an executive saloon.
But whatever car we drive, we all need advice on the best motor policy with their essentially being three different types of car insurance from which motorists can choose:

The three different car insurance types

Third party car insurance cover is the legal minimum requirement and is the most basic policy. Third party insurance pays out if you damage another person or their property, but does not cover your own car. So, if you smash into the back of another car, you cannot claim for any damage to your own vehicle.
Third party fire and theft is the next level up from this; providing the same levels of cover afforded through third party car insurance but also insures your own car against loss or damage by theft or fire.
Then there is fully comprehensive car insurance, which offers maximum coverage to you and your vehicle.
Most people assume that third party insurance is cheaper than comprehensive cover. Well, it makes sense that the premiums would be lower if the protection is more limited. But these days you can often buy a comprehensive policy for the same price or only slightly more than third party insurance. So it is always worth comparing prices on different types of policy.
To find out more about the different levels of cover, visit our car insurance policy types page.

Don't be tempted to drive uninsured

Whether you opt for third party or comprehensive, car insurance isn't cheap. The average policy now costs more than £900 a year, according to figures from the AA. It is therefore easy to understand why some of us might be tempted to drive without insurance cover in an attempt to save money. However, this would be a mistake - and it could prove costly.
The government recently introduced rules to crack down on uninsured motorists, known as Continuous Insurance Enforcement (CIE). The rules basically mean that if you tax your car, you must also insure the vehicle, even if it is sitting idle in your garage. Your car is exempt only if it has been declared off the road with a Statutory off Road Notification (SORN) from the DVLA. Anyone caught flouting the rules will have to pay a fine and could face court action.

Where are you covered?

Motor insurance does not only cover your car in the UK, but also often insures the vehicle if you drive in Europe. But you should pay particular attention to the policy details if you plan to take your car abroad as you might only have the minimum legal level of cover. In other words, a fully comprehensive car insurance policy in Britain might only cover third party damage in France for instance. Most policies also only cover motoring abroad for a limited number of days, typically up to 90 a year. If your existing policy does not provide adequate cover for motoring abroad, you can usually buy additional short term insurance to cover travel to other countries.
There is more advice on driving abroad on our European car insurance page.

What are you covered for?

It is a good idea to check whether any policy includes breakdown cover, which can be a lifeline if you are motoring abroad. European breakdown cover is not automatic, even if it is a benefit of your UK policy.

The impact of age

Young drivers often struggle to find an affordable car insurance policy because they pay higher premiums than the average motorist. The higher premiums are not a result of some ageist conspiracy. Instead, they are the result of statistics. The figures show that young drivers are more likely to be involved in an accident and are therefore more likely to make a claim.
Young drivers can often lower their premium if they add an older, more experienced driver to their policy - perhaps mum or dad. The insurer is comforted by the presence of a motorist who has some miles on the clock, and so is happy to cut the cost of cover. But be careful. You should not put your mum or dad down as the main driver of the policy if they use the car only occasionally as this is a tactic known as fronting and is deemed illegal.

Why the car you drive matters

Your choice of car can also affect your premiums - a souped up Ferrari will be more expensive to insure than a Ford Fiesta. So it is worth checking a car's insurance rating before you buy.
Every car manufactured in the UK is put into one of 50 car insurance groups, based on a number of factors including its engine size and the likely cost of repairs. The lower the car insurance group; the lower the likely cost of cover.
You can find more details on this on our car insurance groups page.

No claims discount

Claims are costly for insurers so one of the best ways to cut your car insurance premium is to build up a no-claims bonus or discount. Most insurers reward careful drivers with a discount - and it can add up. If you can manage five consecutive claim free years, you could earn a discount of up to 75% in some cases, although the size of discount varies between insurers.
The main driver usually earns the no-claims bonus, but some policies also allow a named driver to accumulate a discount, which could reduce the cost of cover when they eventually buy their own insurance.
Motorists can often pay an extra premium to protect their no claims discount. They can then usually make a certain number of claims within a year without forfeiting their bonus. Although it costs more to protect your no-claims discount, the price is often worth paying. You can read more about the no claims discount and its effect on your premiums on our car insurance no claims bonus page.
There are a number of other ways that motorists can bring down the cost of car insurance cover, including agreeing a bigger voluntary excess and driving fewer miles. For more ideas on how you could reduce the cost of your premiums, take advantage of our money saving tips.

What if you have an accident?

If you have to make a claim on your car insurance policy, you have probably been involved in an accident. So it's not going to be pleasant or easy. You are likely to be shaken and confused, possibly even hurt. Of course, if anyone has been injured, then you should call 999. You should also contact the emergency services if the other driver leaves without stopping.
Try to keep calm and get the names, addresses and telephone numbers of anyone involved, including any witnesses. Try also to note down as many details of the incident as possible, including the cars involved, the date and the time.
It's a good idea to sketch out how the accident occurred while it is fresh in your mind - and take photographic evidence on your mobile phone if possible. Never admit liability for an accident at the scene or offer to pay for any damage which has been caused.
And contact your insurer as soon as possible because there is often a time limit on claims. The insurer will then process the claim and arrange for an assessor to come and look at the vehicle.
It is important to give as much information as possible to the insurer - and always to be honest. If you fail to disclose any relevant details or if you lie about a claim, you could invalidate the policy.

Continue

Find out how black box insurance works

How Does Black Box Insurance Work?

If you are a young driver or you've recently passed your test, you could be facing an eye-watering quote for your car insurance. This is because most insurers base their premium calculations on a block of driver profiles and general statistical evidence - and, unfortunately, young and newly qualified drivers are statistically more likely to be involved in an accident than any other group.

However, black box insurance - also known as 'telematics' or 'pay as you go car insurance'- aims to offer drivers a cheaper alternative by delivering driver-centred premiums based upon actual driving style rather than statistics.

Telematics policies in detail

Black box insurance works when your car is fitted with a small 'black box' device, about the size of a smartphone, which records speed, distance travelled and the time of day or night that you are on the road.

The device also assesses your driving style by monitoring braking and cornering. It will also record the types of road on which you typically travel, and the times of day and night you tend to drive, to build up a comprehensive profile of you as a driver.

With a device fitted to your car you can access a secure website to find out how you are performing in each category. This will show you if you need to make any changes to your driving style, and will provide tips on how you can improve your driver score and bring down the cost of your insurance.

As a rule of thumb it is assumed that driving fewer miles on less dangerous roads, while also limiting your night time driving, will result in lower premiums. Policies linked to black box recorders charge premiums on a monthly basis, which means the insurer can adjust them swiftly to reward better driving (and punish those who show themselves to be a risky proposition).

However, although your driving can have a direct impact in the cost of your car insurance, it still makes sense to shop around and compare black box insurance quotes - prices will vary from insurer to insurer as each will have different per-mile and peak-time driving charges.

Who benefits from black box insurance?

Anyone who typically pays a relatively high price for their car insurance, such as young or newly qualified drivers or drivers with any claims or convictions, would benefit most from this technology.

This is because premiums are based primarily on a driver's current behaviour, which gives them an opportunity to demonstrate that they are capable and responsible behind the wheel.

In addition to effectively giving drivers a direct say in the cost of their car insurance, it is hoped that telematics technology will help to improve overall standards by rewarding safe driving with cheaper insurance premiums. Careful drivers may also be given incentives such as 'bonus miles' so they can drive more often on with no increase in future policy price.

In short, if you are a considerate driver that stays away from the more hazardous roads, you should see a reduction in the price of your policy.

Furthermore, if you can limit the amount of driving you do, particularly at night or at peak times, you should also see a reduction in the price of your policy.

Again, to get the full benefit from a black box insurance policy you should shop around to find the cheapest quote for your circumstances as different insurers will operate different pricing approaches for off-peak driving.

So what are the drawbacks?

Although black box insurance seems like a much fairer system, it's not without its drawbacks. One is that you could have the cost of the 'black box' and its installation added to the cost of your cover. However, it is unlikely that this will outweigh the potential savings.

Another drawback is that, if you cover a lot of miles, say during a lengthy commute to work and back, you may not see any savings at all - and may even end up paying more than if you had taken out a traditional policy.

In addition, if it turns out that you are not as safe and considerate a driver as you first thought, you may also end up paying more for your cover. However, the way the system works means that you would at least have a chance to put this right.

And while it may seem a little unsettling to have your every move tracked via satellite, this can have its advantages. For instance, it can pinpoint blame if you are involved in a collision or can even trace your vehicle if it is stolen.

Compare cheap black box insurance quotes

Pay as you go car insurance can be a great way to reduce your premium if you are a young or newly qualified driver, or a driver with a motoring conviction, and you're not going to drive a great number of miles annually.

However, if you are not in either of these groups, or you cover a lot of miles over the course of a year, black box insurance might not be right for you and might actually increase your premium.

That said, it is still worth considering, so it is worth getting a quote from MoneySupermarket to see if it has a positive impact on the cost of your renewal.

If you find that telematics insurance is not for you then there are still a number of ways in which you can cut the cost of your car insurance, the easiest of which is to use MoneySupermarket's comparison tool to find the cheapest quote to suit your circumstances.

Continue