Insurance Companies Try Out Auto Black Boxes

tekiegreg writes "It looks like the first black box test for auto insurance companies is underway. While this may be a privacy issue, it can also make better drivers out of everyone if insurance rates are adjustable based on the way everyone drives. This was covered on Slashdot before however this seems to be one of the first workups, that can even include tests on speed and braking, not just location."

Comments

Re:No.

[Nos.]

Welcome to socialism :)
Okay kidding, I live in Canada, Saskatchewan to be specific. Our mandatory (auto) insurance comes from Saskatchewan Government Insurance. Its a regulated body. If they want to raise rates, they have to justify it. The most I have ever paid for insurance is $1000/year (for a '99 Sunfire GT in 99). There is a flat rate per car, not per driver. If you have a good driving record over the last few years, you get a small reduction up to I believe 7%. However, if you have a bad driving record, it can go over the base rate. It might not be perfect, but it does let safer drivers (or at least lucky ones) pay less than bad drivers.

Re:No.

[erick99]

Insurance companies typically get away with "poor mouthing" by demonstrating that claims damn near exceed premiums. They do not, however, show the income from investing the premiums. The next time an insurance industry person tries that, ask him/her what their company's ROI was for premiums invested in equities, real estate, re-insurance, etc.

Cheers,

Erick