Currently only around 4% of drivers have black box technology – which is also known as telematics – fitted in their vehicles as part of their policy but there is increasing acceptance of the technology which monitors driver behaviour and can help reduce premiums for careful drivers and those doing low mileage, according to market research firm, Consumer Intelligence.

The research shows that 18% believe the market share of black box insurance policies will increase, with 15% believing most drivers will have it in the future.

Awareness of the technology is high – 80% know that black box technology is available and 25% of those questioned say the target market for black box policies is all drivers. More than 57%, however, believe that young drivers are the target market.

Ian Hughes, chief executive of Consumer Intelligence said: “With nearly one in five drivers saying they would consider a black box policy at their next renewal date it is clear that the market is changing.

“There is of course a difference between considering and actually buying and the numbers who have black box policies remain relatively low. However the launch of new products for the market and increasing acceptance of the benefits of black box policies will mean the sector should grow.”

Pricing is key to acceptance of black box policies – 52% of drivers said they would consider a policy which was attractively priced to reflect annual mileage with the possibility of a refund if their annual mileage was less than anticipated.

That compares to 47% for those who would consider a policy priced to reflect driving style with safe drivers receiving lower premiums and price rises being imposed if they don’t drive safely. Perhaps unsurprisingly, 84% would be interested if the black box was fitted free and motor premiums reduced for careful driving.