Self-driving cars and telematics are two concepts radically changing the automobile industry. These technologies can be helpful for drivers in sticky situations and can offer you discounts for good car behavior. On the other hand, there are some concerns when it comes to privacy and incorrect risk assessment.
What Is Driver Monitoring?
Black-box technology is a small device that is attached to your vehicle that allows insurance companies to record the speed and location of your car. This technology is often referred to as telematics.
These devices send data directly from your car to a central hub, which is analyzed by your insurance company. Various indicators will allow them to determine whether or not you are a careful driver.
Insurance companies work with risk measurement. If you're a driver who is reckless at times and tends to neglect your surroundings, the chance that you are going to get in some automobile-related incident is higher. For your insurance provider, that means that you'll eventually cost them money.
Car insurance agencies love safe drivers and want to give their best customers a discount. With the black box inside of the vehicle, they'll see who has a heavy foot as they say and treat speed limits with carelessness.
Not all insurance companies weigh driving factors the same way, according to an Alberta auto insurance company, your premium can be affected by where you live and the specific regulations in your area.
The Pros
For many drivers, monitoring can help add a feeling of security while on the road and can provide an incentive to be safer. Let's go over some of the innovative benefits and conveniences that black box technology can offer.
You'll Have a Reason to Drive Safer
The tracking devices store data about your driving habits, and all of this information is sent to your insurance provider. You'll want to be more cautious about your speed and minor bad habits that you may have had before installing the device.
Black box technology offers an incentive to operate your vehicle safely. The better you are behind the wheel, the more money you'll save at the end of the month.
Pay by Mileage
If you're someone who lives in the city or typically utilizes public transportation, you may not want to have to pay high insurance rates for the car that you barely use. With auto insurance tracking devices, you can pay by the mile.
The telematic gadget is connected to your card and will track your mileage. Keep in mind that if you use a car a lot, you may end up spending more money in the long run.
Security and Roadside Assistance
The device is especially helpful when things take a turn for the worse. If your car is stolen or wrecked in an accident, your insurance company will be alerted of your location and send out help. If you're a parent of a new teenage driver, this can help soothe your worries.
Cons of Driver Monitoring
We're sure that it's relatively apparent that drivers who enjoy getting places quickly should avoid these insurance monitoring policies. If you're a reckless motorist, unless you want a reason to be safer and need some monetary incentive, this technology isn't for you.
Even safe drivers looking to save should consider some of the negative aspects of car insurance monitoring.
Incorrect Risk Assessment
Unfortunately, these devices can also be subject to error, and the information stored is not always accurate. For example, black box technology doesn't take into consideration terrible road conditions and weather.
If you're on a dirt road or driving in the middle of a storm, the insurance company could be receiving inaccurate data about your driving habits.
Privacy
Personal data is considered to be the most valuable resource in the world, even more so than oil. A primary concern with these auto insurance driver monitoring concerns is privacy. No one wants to feel as if they were living in 1984. All of your data, including your location, will be stored by the insurance company.
The Verdict
As with any technology that monitors your data, make sure that you read the fine print before signing up. There may be an added cost of installation or other additional fees. Before you sign on the dotted line, make sure you weigh the pros and cons and be sure that this technology works for you.
Luckily, some insurance companies allow you to test out the device. If you don't receive a discount after the trial period, you can send it back.
