There black box used by insurance companies on car insurance policies, everyone knows it: it is an electronic device equipped with a GPS locator which, if installed on a car, allows the recording of information regarding the vehicle and the driver’s behavior. Less known are the rules of RCA insurance with black boxbecause they are made up of dozens of overlapping and often incomplete rules, with plenty of online hoaxes on the subject.
What is car insurance?
First of all, the car insurance policy is a mandatory guarantee for car owners: it stands for Civil liability. With this, the company compensates damages to others, for accidents caused by the driver. On average, in Italy, the annual price is 400 euroswith expenses that become astronomical (even 4,000 euros) in certain areas where accidents are more likely, such as the Campania.
It is called Rca base, standard. Companies are required to stipulate it, preparing a quote upon request of the consumer, and are free to set the prices they want.
Fake insurance with black box
Mandatory car insurance with black box, and strong discount obligation: two fakes.
- The first fake is that companies are required by law to stipulate car insurance with a black box. This is not true: in reality, Insurance companies are only required to sell the basic guarantee. Plus, if they want, they can propose the one with a black box: a faculty.
- The second fake is that companies are required by law to grant large percentage discounts, set by Ivass (the Institute for the Supervision of Insurance) compared to the basic RCA. This is not true: in reality, Insurance companies are free to set the rates they want. Each has the right to do as it believes, based on its own internal policies.
But then, why are there those two fakes? Because in the past more read they imposed the obligation of RCA with black box and the obligation of discount, referring to various ministerial implementing decrees: these never arrived and are still awaited.
Disadvantages of black box insurance
The penetration of black box RCA has reached 22% in the period 2018-2020. But then the collapse: today only 18% of new insured people choose the policy with black box (source: Ivass report from the end of June 2024). Why this decline that never stops?
- Motorists have noticed that, compared to basic Rca, the discounts are really low, they are not satisfying at all. And that the infamous mandatory reductions are optional.
- If there is a discount, however small, this starts from the second year and not from the first. In the initial 12 months, the company checks the driver’s driving style: if he is careful at the wheel, then here is the small cut on the initial RCA. Therefore, for at least 12 months, you are left high and dry.
- It is the company, interpreting the data from the black box, that determines whether the driver is being careful. If it deems that he is not, a raise is triggered. So, there is also this unknown that casts a shadow over the system.
- As is only right, in the event of an accident, if the black box records even the slightest infringement by the customer, the latter will see the compensation reduced for contributory negligence: for example, travelling one km/h over the speed limit while the at-fault car was crossing the intersection with a red light.
- There is no interoperability, as there are no implementing decrees for the laws: a black box from one company is only good for that insurance. If you change companies, you must also install a different black box. Let’s hear from Ivass: “There is currently no practice of exchanging data between companies. The adoption of the black box may create lock-in effects, to the detriment of competition, because the benefits acquired by demonstrating prudent driving behavior may be lost if you change insurer.”
What Minister Urso said
“In the 2023 Competition Bill, which we will present in a few days to the Council of Ministers, we will include measures that can simplify a series of processes for the benefit of insured persons and promote competition in the sector. Starting with more streamlined procedures for transferring from one company to another, with positive effects on policy prices. In this sense, we will also include measures that will allow insured persons, pending full interoperability, to transfer the data contained in the black boxes even when changing insurance companies”. Translated: there is no interoperability, but at least an attempt is being made to introduce data exchange.
Theft and fire insurance: the locator
By fitting the black box, you can also obtain variable discounts (however low) on the optional additional policy Theft and fire. Please note however that the black box it is not a real mechanical anti-theft devicebut rather a locator: in certain cases, if the thieves are not professionals, it allows trace back the vehicle. And sometimes to recover it.
Read also:
→ Car insurance, renewal, quote and documents
→ Car fire and insurance coverage
→ How long does the coverage last, 15 or 30 days?
→ Expired insurance fine: what are the risks?
→ Electric car insurance
→ Electric car battery insurance
→ All the news where we talked about car insurance
→ What do you think? Take a look at the discussions on the FORUM!
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