Telematics black box in cars might help you save on car insurance

Right now, most insurance companies will charge a premium on your car insurance based on the make and model of the car, in addition to the number of accidents you have had in the past. Well, perhaps some of you out there might think that it isn’t fair for you to pay the same amount of insurance premium as with your neighbor, despite you being far more careful than he/she is, and ever will be. Enter the world of telematics, where a black box installed in your car will inform your insurance company of the exact location, as well as your driving habits each time you are on the road. For those who love putting the pedal to the metal, say, hitting 100mph in a 30mph zone, then expect your premiums to soar accordingly. It can even detect whether you habitually accelerate or brake suddenly, or if you love going for joyrides into the wee hours of the morning each weekend. The higher risk your behavior is, so too, will your eventual car insurance skyrocket.

It all sounds very Big Brother-like from certain perspectives, but what do you think? Will such black box technology installed in vehicles actually result in more careful driving so that one will pay less eventually? I wonder just how much more premium one must pay if one drives a new Mercedes-Benz that allows you to update your Facebook status from behind the wheel.

Edwin Kee
Categories: Transportation