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Your Car’s “Little Black Box”

Monday, February 9th, 2009 11:26 am

How would you feel about having your auto insurance company monitoring your driving habits? Believe it or not, some states are actually considering allowing auto insurance companies to install small devices in the vehicles of their clients so they can keep track of their driving habits. The idea is to track the habits of drivers in order to determine just how safely they drive as well as how often they drive their vehicles. While some fear that this is a gross invasion of privacy, others believe it is the right step to take in order to reduce insurance rates and reward safe drivers.Using the BoxSince insurance companies set their rates according to a variety of different factors, including the number of miles the person drives, this little box is designed to help insurance companies keep better track of how many miles a driver is logging on his or her vehicle. Some argue, however, that a box isn’t necessary when it comes to keeping track of mileage. Rather, the insurance company could simply check the odometer on a regular basis or customers could submit their maintenance records, which would include the current mileage on the vehicle as recorded by the maintenance garage. Since there are other options available, consumer advocacy groups are asking why it is necessary to electronically monitor mileage. Is it because insurance companies are interested in learning more than just mileage information? If so, do they really have the right to know?The Insurance Company’s Point of ViewAs would be expected, most insurance companies are in favor of installing electronic monitoring devices on the vehicles of their drivers. In addition to finding out more about the number of miles their clients are driving, they want to use other information provided by these boxes to help them determine which drivers are more likely to get into accidents. As a result, they feel they can help save the industry a significant amount of money while also helping safe drivers save on their personal premium costs.The Consumer’s Point of ViewWhile using the electronic monitoring devices may sound good in theory, there are many questions left to be answered regarding the devices. For example, how exactly do the insurance companies plan to use the information to help them decide who is a “safe” driver and who is not? Privacy, of course, is the main concern. With the many advancements that have been made with technology, it is certainly possible for the insurance companies to monitor a driver’s every move. GPS technology makes it possible to track when and where a driver is driving at any time of the day and night. Is it really the insurance company’s business when you go to the doctor, when you go out for a night at the club or when you go visit your parents?Many questions are left to be answered about these little monitoring devices, which some insurance companies have already put into place. Whether or not the usage will spread and be backed by legislation, however, remains to be seen.

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