Auto Insurance "By the Mile"

[1manshow]

Speaking with several executive level managers recently about the future of auto insurance pricing models. They think the innovators will introduce EDR technology and clients will eventually pay by the mile according to the data transmitted from their black box. Charges will be underwritten based on driving habits, time of day usage, etc. from each vehicle with a data recorder. Thought that was an interesting tidbit to share for thought !

 

[SportsNut]

And that black box will transmit the speed, and maybe the route, then they can determine that a driver sppeds while driving, and then comes the cancellation in the mail; for me at least.

Big Brother has not only arrived, but seems to be occupying the spare bedroom here lately. What has happened to us...... There could be a secluded island in my future.

 

[1manshow]

I'm still wondering how I will put the box in my Mustang that sits in the garage 9 months of the year and then to my wife's car since she actually obeys most of the laws !!

Big brother is already watching it seems....approx 70% of new cars already have EDR's....before congress has mandated that permission be granted by the vehicle owner ???

 

[somarco]

InsureBlog: Insurance by the Mile?

 

[1manshow]

Not sure where they get their info. on the blog but three major insurers(that I know of) currently have pilot programs underway with "black boxes" in clients cars. They transfer the data to the company and it is evaluated, of course they have knowingly signed on for this "test" project.
90+mph @2am Sunday= red flag, excessing acceleration/braking etc, etc.

Knowing the box is in the car....priceless

 

[somarco]

Going from memory. Someone had posted about IBTM on another forum offered through Milemeter.

Comments came from the site, our observation and comments from a state insurance auditor.

Milemeter FAQ

 

[Crabcake Johnny]

...maybe we see the day when the black boxes transmits data in real time that that insurance carriers tap into. Go 70 in that 55? check the mail - here comes your rate increase from the auto carrier:-) - could you even imagine.

 

[Sam]

Aren't there some statistics that say how most accidents happen near the home? I would think that not all "miles" are created equal, and residential miles should be more expensive to insure than highway miles?

 

[maxjlone]

The road to saving on auto insurance is something that every consumer travels at one time or another. And the quest is really not as difficult as it may appear. Saving on auto insurance can be a snap if you know the right places to look, and the best avenues to shop around.Here is a great way to save of auto insurance: driving safely. Driving with caution is one of the number one ways to keep those rates on the lower end. Insurance companies do not take too kindly to traffic tickets and auto accidents because they only increase their costs.Keep your credit in good standing. Some auto insurance companies will use your credit rating score in calculating your rates.

Auto Insurance Quotes

 

[1manshow]

maxjlone, that safe driving stuff is a bit outdated...when we get a driver with an at-fault, a minor violation and his credit score is 800+ he gets into the same tier as the little old lady who's had no accidents or violations in the last 40 years. Personally, I liked the system before credit scoring/modeling but this 21st century "holy grail" of underwriting is the new wave.