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Motability has halted the requirement for black boxes in vehicles after receiving backlash from drivers. The black boxes were intended to monitor driving habits but faced criticism for inconsistency and confusion among users.
Motability drivers will no longer need to have a black box fitted to their vehicles following criticism from users affected by the rule changes.
The Motability scheme - where certain disability benefits can be exchanged for a lease on a vehicle - had made the black boxes compulsory for new leaseholders, and all drivers aged under 30, in April.
Motability boss Andrew Miller said the "Drive Smart" programme was introduced to help reduce accidents and manage insurance costs, but had been paused amid concerns and "anxiety" from users.
He said drivers reported the app was inconsistent, did not understand their driving adaptations and that the rules and guidelines were confusing and restrictive.
The black boxes were designed to track and regularly rate a user's driving habits, such as speed and braking, where repeated poor ratings could have seen drivers removed from the Motability scheme altogether.
Now those who were enrolled with the Drive Smart programme will be taken off it from 22 May, Motability said.
The changes had been criticised by actor and disability rights campaigner Keron Day, who thanked Motability bosses for "recognising the seriousness of the issues for disabled people's lives."
Day, who appeared in the hit Netflix show Sex Education, has cerebral palsy and uses a specially adapted wheelchair accessible vehicle (WAV).
The car has a steering aid and indicators on the floor, as well as buttons for lights, wipers, gears and the handbrake.
He campaigned alongside West Cornwall MP Andrew George to reverse the decision for compulsory black boxes. The pair met Motability bosses to discuss the issue last week.
Motability CEO Andrew Miller said: "Drive Smart was introduced to help reduce accidents, improve driving and, in turn, manage insurance costs, while keeping all the scheme's insurance features in place.
"But we have listened carefully to customer feedback and recognise that the experience was not where it needed to be.
"That is why we have decided to pause Drive Smart while we work with customers to understand how it can be improved."
Black boxes monitor driving habits and can provide a weekly rating graded using a traffic light colour scheme.
A green rating could mean cheaper insurance, but more than four red ratings over a period of 12 months could see drivers removed from the Motability scheme.
George and Day had criticised Motability for imposing an "invasive telematics tracking technology" without proper consultation or adequate safeguards in place.
George said: "I must congratulate Motability CEOs for listening and being prepared to change policy when confronted with the impact this scheme has had on thousands of disabled people.
Motability stopped requiring black boxes due to criticism from drivers regarding the program's inconsistency and confusion.
The black boxes were intended to track driving habits and manage insurance costs to reduce accidents.
The black box requirement affected all new leaseholders and drivers under 30 in the Motability scheme.

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"Keron and I are keen that they make some major changes before deciding how they will better manage the difficult insurance challenges faced by the scheme."
Motability said it would continue to review the programme and was also creating a new customer panel to allow users to help shape how Drive Smart develops.
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