Black Box vs App-Based Insurance: What’s the Difference?

Telematics insurance generally comes in two forms: a traditional black box or an app-based policy. They work towards the same goal, but there are some important differences between them.

A black box policy uses a small device fitted to your car to monitor how the vehicle is driven. App-based insurance uses the sensors already built into your phone, so there’s no additional hardware to install.

Both give insurers more information about how you actually drive. For new drivers in particular, that can mean relying less on general statistics about your age group and more on your individual driving behaviour. As a result, telematics policies can often work out cheaper than standard insurance.

So, which option is better? It really depends on how you drive and what you want from your policy.

What do black boxes and apps measure?

The exact scoring system varies between insurers, but most telematics policies look at similar aspects of your driving.

These can include your speed, braking, acceleration, cornering, mileage and the times of day you tend to drive. Generally, smooth and sensible driving will help you build a better score.

Neither type of telematics insurance records conversations. Some policies may offer additional features that allow family members to see certain driving information, but this isn’t a standard feature of every black box or app-based policy.

What’s the difference between a black box and an app?

Installation. A traditional black box is fitted to the car and stays with that vehicle. An app-based policy doesn’t require any additional hardware. You simply use your phone to record your driving.

Who’s being tracked. A black box monitors the car, so it can record journeys regardless of who’s behind the wheel. If someone else regularly borrows your car, their driving could therefore form part of the data collected. An app follows the phone instead, although it needs to distinguish between journeys where you’re driving and journeys where you’re simply a passenger.

Reliability. Because a black box is installed in the car, you don’t need to remember to take anything with you. With an app, your phone needs to be present and working correctly. Things like battery settings and permissions can sometimes affect journey recording.

Driving feedback. App-based insurance can make it easy to see your score and understand how individual journeys have affected it. Black box providers may also offer an online dashboard or app, although the amount of feedback you receive varies between insurers.

Policy rules. Both types of telematics policy can come with conditions around your driving score. Some insurers may take action if your score falls too low, while certain policies also have restrictions around mileage or when you drive. Always check the individual policy terms rather than assuming all telematics insurance works in the same way.

Is a black box or an app cheaper?

There’s no option that’s guaranteed to be cheaper for everyone.

One insurer might give you its lowest price through a black box, while another could offer a better app-based policy. Your age, car, postcode, mileage and driving history can all affect the result.

That’s why it’s better to compare the actual prices rather than choosing the technology first.

If a black box saves you £400, you might decide it’s easily worth having one fitted. If the difference is only £40, you may prefer the convenience of an app or even decide that a standard policy is worth the extra cost.

There’s another option: Rooster’s Test Drive

Rooster’s Test Drive works slightly differently because your driving assessment isn’t tied to an insurance policy.

Instead, you complete a three-to-four-week Test Drive using your phone. There’s no black box to install and you don’t need to have telematics running throughout your insurance policy.

Your driving score remains valid for 18 months and can help you access car insurance that’s up to 40% cheaper.

This can be particularly useful if you don’t want to commit to a full year of telematics insurance. You can complete the Test Drive during your first year, build evidence of how you actually drive and then use your score when you’re ready to look for a better price.

How should you choose?

Start by comparing the prices.

If there’s a significant saving with one option, that may make the decision straightforward. If the prices are similar, think about which setup will suit you better day to day.

An app-based policy may suit you if you always have your phone with you and like being able to check your driving feedback. A black box might suit you if you’d rather have something installed in the car that you don’t have to think about.

Most importantly, read the individual policy conditions before buying. Two policies that both call themselves “telematics insurance” can have very different rules.

Black box vs app FAQs

Is app-based insurance as cheap as black box insurance?

It can be. Sometimes an app-based policy will be cheaper, while other drivers may get their lowest price with a black box. Comparing quotes is the only reliable way to know which will cost less for you.

Does a black box track where I go?

Black boxes can collect location and journey information as part of the data used by the insurer. Exactly what information is collected and how it’s used depends on the provider, so check the policy documents and privacy information before buying.

Can a telematics app drain my phone battery or use my data?

Telematics apps need to use some battery and mobile data to record journeys. How noticeable this is will depend on the app, your phone and your settings.

What happens if I get a bad driving score?

It depends on your policy. Some insurers may warn you about poor driving, while others can change prices or cancel cover in certain circumstances. Check how your insurer handles low scores before taking out the policy.

Is the Rooster Test Drive a black box?

No. Rooster’s Test Drive uses your phone to assess your driving over three to four weeks. There’s no device fitted to your car, and it isn’t a black box policy.

Download Rooster and start saving.