Motorists in the UK are collectively missing out on an estimated £1.7 billion in savings on their annual car insurance policies.
New research from uSwitch.com revealed how much British drivers were missing out on, which works out as around £145 per driver and up to £372 a year for young drivers, for taking out a telematics policy.
Average car insurance policies have reached a record high in the UK this year with prices expected to continue to rise over the next year.
Reasons for prices soaring are due to changes to the Ogden rate, which works out compensation for people with long-term injuries, and an adjustment to Insurance Premium Tax.
Car insurance premiums are currently increasing at five times the rate of inflation.
According the study, around 54 per cent of policy holders are aware that telematics premiums are cheaper but only five per cent of motorists have taken out a black box insurance policy.
The research reveals that over a third (36 per cent) of drivers who switch to black box policies found that they had a cheaper premium.
Careful drivers can end up landing themselves discounts of up to 21 per cent by taking out a telematics policy.
Despite almost 50 per cent of those surveyed being open to the possibility of taking out a black box insurance policy, almost half are concerned about being tracked while driving, 28 per cent not wanting to have to pay to have the box installed.
The cost of installing a box can be as much as £85 but total savings can greatly exceed the one off fee.
There are however other benefits to taking out a black box policy in addition to the cheaper insurance policy.
These include being able to track your car if its stolen and locate it if you are in are involved in an accident.
Young drivers are the most likely to feel comfortable with black box insurance, with almost a quarter (23 per cent) having already switched compared to only 2 per cent of over 55s.
Rod Jones, insurance expert at uSwitch.com, says: “The British public are very savvy, and are always looking for ways to save extra pennies, especially given the rising costs of car insurance which have soared by a fifth in the last year.
“With savings of up to £145 on offer when installing a black box and the added benefits that this technology brings when it comes to safety and theft, we’re encouraging drivers to take time to research black box policies and see if the new technology could help drive down the cost of their policy.
“The money saved could instead be put towards essential car maintenance or paying off other household debts.”