The new device is a very effective way to make drivers obey the rules. The incentive is great – money. Sprint’s Emerging Solutions Group created a system that allows monitoring driving habits of a car owner. It is put into a car and analyzes information about driver’s safety. The information includes data about the amount of miles an owner drives; the time he drives, his speed and the amount of accelerates breaks and corners. The insurance firms get the information and make their own conclusion. The company may give a discount to good drivers and increase the price of auto insurance for those who do not follow speed limits, do not use turn signals and do not obey other rules.
Though many drivers do not admire the idea of being controlled, they admit the device is great for everybody. It helps good drivers save on insurance and society can enjoy with safe situation on the roads. Insurers in their turn can base the cost of the insurance not on the common information about the customer’s place of living or his credit score but on the concrete data of his driving habits. It will allow the company to reduce its cost in case of claiming. This way the new program called “Usage Based Insurance” is going to become a commonplace thing like mobiles.
In addition, an insurer can offer programs that control a car health, location, service needs and fuel efficiency. In the closest future the device will include some financial institutes. They will give a possibility to stop an owner from driving if he is late with payments and lock the car.
To help the spread of the device Sprint’s Emerging Solutions Group makes first three months of using the program free from charge. So, any driver can try and evaluate it. Anyway, the trend of on-board automatic monitoring is a good reason to think about our bad and good driving habits and to make our driving safer. Besides, cheap car insurance is worth giving up bad driving habits. “Pay-as-you-drive” car insurance may totally change our attitude to an on-board spy and this way turn situations on the roads to the better.