Black box and telematics car insurance premiums keep track of how you drive and can contribute to lower overall premium costs.
The boxes installed into your vehicle will see how harshly you brake, accelerate and drive and create a profile of what kind of a driver you are.
This can then be used to reduce the cost of your premium if you can be provided to be a good, safe and reliable driver.
They also look at your driving style, mileage, route and what time of day you travel to calculate your overall premium cost.
Some studies have shown that motorists with black boxes fitted tend to be safer and drive more carefully. If they do drive safer then their policy will be reduced over time.
These types of premiums are often more popular with younger motorists as they tend to fork out the most for their annual car insurance bill than any other motorist.
While it is well publicised how black box policies can save younger drivers money, it can also save older drivers a fortune.
In fact, one in three motorists under 25 use a black box to save money finds analysts LexisNexis Risk Solutions. Just one in 20 motorists over 55 took out a telematics premium.
Some groups of older motorists face higher premiums just down to their age and black box policies could be a good way for them to save money.
Motorists aged 50 to 64 stand to save an average of £484 per year, those aged 65 to 79 could save £343, and over-80s could pocket £145, according to comparison site Comparethemarket.
Martyn Mathews, of LexisNexis, says: “The vast majority of drivers who could gain from the safety advantages of telematics and insurance costs based on how they drive, rather than how insurance providers think they might drive, are missing out.”
But as Roger Ramsden, group chief executive of telematics insurer MyPolicy, says: “The traditional insurance industry is based on putting drivers into clusters of risk, but, by its very nature, that system means that half of those in every group are overpaying and the other half are underpaying.”
One complication with black box or telematics is that each policymaker requires you to fit one of their boxes on your car and also can charge to remove it.