Five reasons to ditch the Black Box for Social Proof Insurance
Insurance is set to change and customers are set to benefit. The expansion of the Internet-of-Things (IoT) has expanded the use of telematics, with black boxes fitted to millions of cars. The new disruptor is peer-to-peer insurance models, which allows individuals to leverage their social network for cheaper insurance, VouchForMe’s social proof model makes use of peer networks, building insurance based on trust and community. Here are five reasons to consider moving away from the black box.
Bad driving isn’t always black and white.
Take the following scenario: You’re driving to work, keeping at the speed limit when in front of you another driver runs a red light. So you slam the brakes hard avoiding a crash. Good driving? Not according to the black box. It doesn’t see the context, to the insurance company that’s just a mark against you for heavy braking, meaning that events outside of your control, could lead to a higher premium. VouchForMe relies on those who know you assessing your driving skills, and if one of your guarantors witnessed the above event, they’d understand the reaction.
The technology has improved, but it’s far from perfect
Last week we mentioned the woman who was marked down for speeding while sitting on a train. Another young driver had her £1,332 policy canceled after her black box recorded her driving at 119 mph, though she later proved her car couldn’t even get up to that speed. Another driver apparently drove for five days without stopping to sleep! While these cases are rare, they do raise concerns about how accurate the data recording boxes are, and companies aren’t entirely transparent about how their algorithms work. With social proof, you’ll never be unfairly penalized by faulty technology.
You can stay out late!
Black boxes won’t just mark you down for speeding, or running red lights. They look at everything. The times you drive, the types of road you drive on, where you park your car. Everything. So if you work 9–5, live in an urban area and never drive at night, you’ll be fine. For most people, that’s not realistic. Millions of people live in rural areas, work night shifts and need their cars for that. With social proof and VouchForMe, you can access a better premium while staying out as late as you want. One VFM user in the UK, Edward Crane, chose VouchForMe over the black box for this very reason.
With social proof, you don’t need extras
There are a few different options for telematics devices on the market. You can have a black box fitted to your car, which means you’ll need to give it up for half a day, but that’s not ideal for those who share cars since the insurance company has no way of knowing who’s driving. Recently a lot of telematics-based apps have popped up, doing away with the need for installation. But do you always have your phone? Probably, is it always fully charged though? Maybe not. If you just want to quickly pop to the shops, it’s a bit of a pain if you can’t find your phone, because you’re required to record your driving. Social proof doesn’t require you to use any apps or place anything in your car, just drive as you always do.
Social proof is better for families
A lot of young couples, can’t afford two cars, even when they do have two, they’ll often both be insured on each other’s car. Some young drivers share cars with parents or siblings too. With black box insurance companies only establish who’s driving in the event of a crash. So if your partner takes your car out and speeds like a madman, it’s you, the policyholder that gets a black mark, which leads to both higher premiums, as well as arguments. And both of those, are best avoided.