Monday, July 29, 2013

Will Auto Black Boxes Reduce Insurance Costs?

The NY Times reports that new cars are now routinely being equipped with "Event Data Recorders" (EDRs) that can be refereed to after a wreck.
So, when the lieutenant governor says he was doing nothing wrong when his car crashed, it is possible to verify this:
But a different story soon emerged. Mr. Murray was driving over 100 miles an hour and was not wearing a seat belt, according to the computer in his car that tracks certain actions. He was given a $555 ticket; he later said he had fallen asleep.

This additional monitoring should have the effect of both deterring poor driving behavior and reducing the costs of adjudicating insurance claims.

HT: Mungowitz

1 comment:

  1. Auto black boxes should help reduce insurance costs, but at what cost? If there was an accident and someone was injured. That person would have to wait for the black box to be looked at and then a court would decide if the person who was driving was liable. The insurance company would still pay for the damages up front, and the person who was driving would have an increase in their monthly payment. However, the black box will only help if the car malfunctioned. If this happens, the insurance company can sue the automotive company for loses and allow the driver to not have to pay as much for their monthly premiums.