Take a minute and think about your family’s first car. What safety features did it have? Did it have seat belts? Air bags? Crumple zones? Anti-lock brakes?
It’s fascinating to think since the first four-wheeled automobile invented by Gottlieb Daimler in 1886, there has been so little change to the actual idea- a motor, 4 wheels, seats, and a steering wheel but the technological advances have been substantial.
New technologies are being used to keep passengers safer in and around vehicles. Benefits of the merger between technological developments and the automobile industry result in things like federal regulation mandating all new vehicles sold in the US by May 2018 have rear visibility technology also known as backup cameras. Other technological innovations help drivers avoid a crash such as pre-collision braking, enhanced blind spot detection, lane departure warnings, and lane centering assist. With the increase of technology helping drivers be safer on the roads, car insurance companies have in turn been helping drivers save money by offering discounts on their premiums. Some of the standard discounts offered by most carriers are the good driver discount, safe driver discounts, and low-mileage discounts. Currently, there is another uptick in the trend of technology, joining together with insurance carriers to offer additional discounts: dashboard cameras and monitoring devices.
The trend of cameras and monitoring devices
Let’s take a look at what this means and how it can help save you money on car insurance.
Dashboard cameras
Dashboard cameras or dashcams record video footage of the road as well as the interior of the vehicle. Some dashcams need to be manually turned on and record the entire duration of the drive, and some are only activated in an incident (event data recorders). Dashcams are not necessarily new to the scene, the first one was credited to California Highway Patrol Officer R.H. Galbraith in 1939. Now dashcams are used widely by law enforcement agencies, commercial vehicle drivers, and long-haul truck drivers. Recently, private passenger drivers have been installing dashcams as an aftermarket item to deter vehicle theft, heighten the ease of filing insurance claims, and increase road awareness. Additionally, several vehicle manufacturers now offer factory built-in dashcams with the expectations for more and more manufacturers to follow.
Dashboard cameras and car insurance
Dashcams are a tremendous resource in the event you should have to file an insurance claim, and may help keep your insurance rate low with a discount. The benefit of a dashcam, even without receiving an insurance discount, is documented, irrefutable evidence when it comes to traffic crashes and other non-collision incidents.
Monitoring devices
Driver monitoring devices or telematics do just what they are named- monitor drivers. This technology sends, receives, and stores data surrounding the driving aspect of the vehicle, not the internal combustion mechanics, but the overall actual use of the vehicle. Some data collected includes the speed, location, and any anomalies such as an immediate forceful stop or airbag deployment. This technology embedded in these devices can help find lost or stolen vehicles and send emergency alerts at an instant notification of a crash.
How do vehicle monitoring devices work?
By using a smartphone app, a plug-in device in your vehicle’s computer diagnostic port under the steering wheel, or an electronic tag mounted inside your car, insurance carriers have taken advantage of this level of telecommunication to offer you usage-based insurance (UBI) discounts. Insurance carriers process the usage-based data and formulate a risk analysis to determine if you are a safe driver.
What determines a safe driver?
The exact types of data collected through monitoring devices and how that information is used varies by insurance companies, although they typically include:
- Time of day
- Mileage
- Location and route
- Speed
- Acceleration, braking and turning
- Phone usage while driving
What are the benefits of enrolling in a safe-driver program using monitoring devices?
The insurance benefits of using a monitoring device in your vehicle are:
- Lowered Rates
- By consistently using a monitoring device, insurance companies offer good driver discounts.
- Increased Safe Driving Behavior
- Knowing driving behavior is being monitored, drivers are more likely to adopt safer habits. Adopting safer habits not only increases the safety of the driver and the vehicle’s occupants but also other drivers on the road.
- Enhanced Risk Assessment
- Telematic devices enable insurers to access risk with never used before accuracy. By analyzing real time data on driving behavior, insurers can customize premiums that reward safe drivers. If your teen happens to be the most careful driver on the road, you could benefit from this curated data analysis.
How do I know if my car insurance company offers a telematics discount?
First, you should know, you can only get a discount by sharing your data with your insurance company.
Second, the best way to know is to contact your insurance company and ask if they currently offer discounts or if they expect they will in the future.
What else do I need to know about dashboard cameras or monitoring devices?
Do your research to see if purchasing an aftermarket dashcam or enrolling in a monitoring device program would benefit you.
Dashcams:
- Legal issues: Some states have laws preventing certain dashcams from being used due to privacy concerns while other states do not have legislation on the books. So even if you are insured in a state that does not regulate dashcams but road trip to another state, you will need to be aware of that state’s laws.
- Mounting location: If you use a dashcam make sure to mount it in a safe place without obstructing the driver’s view, like behind the rearview mirror.
Monitoring Device:
- Compatibility: Depending on which device is used, a smartphone app or a plug-in device, make sure you, your phone, and vehicle are compatible.
- Other Drivers: Read the small print to determine if other drivers of the vehicle can affect the data being transmitted to the insurance company.
- Passenger Data: Some smartphone apps require you to manually turn off data recording if you are a passenger whether it is your own car, someone else’s car, or a ride-share.
- Vehicle’s Computer Diagnostic Port: The current standard port has been mandatory in all vehicles since 1996, so older vehicles may not have the ability to use the plug-in monitoring device. Additionally, some other devices use this port like some child passenger seats on the market to monitor and alert drivers for children in the car seat.
The use of cameras and monitoring devices in vehicles is transforming the auto insurance industry, bringing significant benefits in terms of risk assessment, fraud prevention, and customer experience when filing claims. With the increase of technological advances merging with the auto industry, insurers can create a more equitable platform which in turn benefits everyone on the road. As this trend continues to gain traction, the role of cameras and monitoring devices will only become more central to the future of auto insurance.
For more information, get a quote online or call us at (866) 231-2433.
