The actual black box is a small GPS device, about the size of a mobile phone, installed in your car by a professional when you take out the policy. Some insurance providers may charge for installing, cancelling or removing the black box. Black box policies are also known as telematics. If you're confident about your driving, a black box might be a smart solution when it comes to saving money on an insurance policy. These tend to be very popular with younger drivers who see high insurance premiums in their first couple of years as they're new drivers and are seen as being higher risk.

These little gadgets are fitted to your car in order to pick up information about your driving — everything from the number of miles you cover, to what time of day the car is being driven, your location and even your driving style (whether you're speeding, braking or cornering too hard etc). Some car insurance companies are moving to app-based trackers, too, which means your phone will do the work of the black box and send it to your policy provider. If you're a safe and careful driver, you'll usually be rewarded with a reduced premium after the first year or so.

If you aren't, you can be penalised by the insurer cancelling your policy if they think you're reckless or if you're caught speeding. Regular severe braking or steering can be seen as signs of poor anticipation and poor driving. If you have an insurance policy cancelled, it can make it difficult to get a policy in the future. There are also some big restrictions on some of these policies, including but not limited to not driving at certain times (after midnight and the like) and mileage limits. You could be penalised for bad driving, too, which could mean a higher premium.

It's a bit like still having a driving instructor with you. But, on the plus side, through telematics, you’ll be able to see information on your driving via an online dashboard or app. In most cases, you’ll also get feedback, advice and tips based on your driving habits. Overall, if you think that you're a good driver then it might be worth considering. However, there are other ways to bring down a policy, too — including shopping directly through an insurance broker rather than a comparison site and advanced driving courses. Driving courses like Pass Plus take at least six hours and help drivers improve their skills behind the wheel. It may help you get a car insurance discount if you successfully complete the course as well.