Some car drivers in the U.K. who are insured by Norwich Union are participating in a pilot project to evaluate the feasibility of basing insurance premiums on how and where they drive. Norwich is paying to install the following black box in cars that are in the pilot program.
The black box records how far and how fast the vehicle has been driven. Using GPS, it also records which roads the car was driven on. All that data is then uploaded to the insurer via a phone link. The insurer then calculates the premium based on the route chosen and time of travel. Presumably, those who drive long distances along busy routes every day will pay more than those who don’t.
Related posts:
{ 3 comments… read them below or add one }
Not to sound like a conspiracy theorist, but aren’t you giving up a little too much info with these black boxes?
Yeah, especially with accounts being hacked all the time, I would be a little wary to give up this kind of info.
I also assume you’d pay more with pay-as-you-drive insurance if you park your car in areas where there are high rates of car theft. I have a feeling, though, that very few customers would benefit from this program.