Entries Tagged 'Auto insurance' ↓

You might think this is another of these articles rambling on about distractions while driving. Yes, there are manufacturers who build in technology to watch TV or play DVDs. Most people in the back seat might think this a good idea but, from the driver’s point of view, driving gets more exciting when you have to turn around to catch the replays. But, as it happens, this is about something completely different. Do you remember the reality show called Motormouth? This was one of these “play-a-trick-on-your-best-friend” shows in which unsuspecting drivers would be encouraged to sing while navigating local streets. The results would then be viewed by a panel consisting of the show’s producer and friends. A winner was then declared and embarrassed by being shown up as the person least likely to succeed on American Idol (even with Jennifer Lopez as a judge who can’t say no). Well, here comes a real-world version designed to impact driving standards on your local streets.

One of the most unnerving of all moments for a parent is when their teen gets a driving license and then demands the keys to the family car. The statistics all suddenly leap into focus. Tens of thousands of teens are killed and injured on our roads every month. When you hand over the keys, you are praying your teen will not end up a statistic on a local hospital gurney. Yet, there has been a quiet experiment going on in Wisconsin since 2007. It’s called the Teen Safe Driver Program, run by American Family, a local insurer. The company offers parents a discount on the policy for their teen if the company is allowed to instal cameras inside each vehicle.

The way the package works is simple. One camera watches the road. The other captures the expression and body language of the driver. This is a realtime stream. If there’s a dramatic event, brakes are suddenly slammed on or there’s a violent swerve, the package saves the images for the twenty second before the event and notifies the parents. Everyone can then view what happened before, during and immediately after the event. Yes, there’s a remote website where authorized people can access the recordings and see exactly what the driver was doing. Mostly, it’s just the parents who see how badly their teens are driving. But obviously, the insurance company, police and other authority figures also have a interest in a factual record of what happened to decide who was at fault in any accident. Continue reading →

Let’s start off in New Hampshire. The first question is whether the design standards in modern vehicles make annual safety checks unnecessary. If you said, “yes”, you are with the thirty states that do not require any safety checks. The theory seems to be responsible drivers maintain their vehicles and are not a hazard on the roads. If there’s an accident, they pay more for their insurance – it’s a stick and carrot approach to social responsibility except it forces up the premium rates for all drivers. In states where there are annual checks, vehicles are better maintained, there are fewer accidents, and drivers pay lower rates. New Hampshire has just decided to move from one to two-year inspections. Now there will be thousands more vehicles on the road with poor brakes and defective front ends. Guess what will happen to the premium rates.

In Mississippi, there’s a bill to enforce the mandate by requiring drivers to produce proof of insurance before the tax collector issues a tag. Governor Haley Barbour is currently considering whether the new database will be open to the police to check the status of all drivers. If he does sign this bill into law, it will potentially reduce everyone’s insurance premium rates. The more people are forced into paying for the basic minimum liability policy, the less the law-abiding people will pay.

In New Brunswick, the Insurance Board is refusing to release a report into whether local insurers have been overcharging drivers for the last seven years. The lawmakers established an arms-length board in 2004 but, for some reason, they are less than enthusiastic about forcing disclosure of this board’s investigation. In the meantime, New Brunswickers continue to pay higher than average premium rates. Continue reading →