Black Boxes will Revolutionize Insurance

Commerical Airplanes have "black boxes"  to tell the company how pilots are flying and also help put together the story after a misfortunate crash. This technology is now being moved into automobiles and the insurance companies are taking advantage of it. Using the monthly reports that the black boxes send to the companies, car insurance policy holders are charged premiums based on driving habits of the owner. Is this right? Many people think that this is an invasion of privacy, while many others welcome this technology. If you are a great driver who has been safe and accident free, the black box will help you pay less in insurance premiums. On the other side of this equation, is the driver that runs red lights and continually drives over the speed limit, could be faced with increasing monthly premiums. Will this make people better drivers because their habits are immediatel rewarded or penalized by the "black box"? It remains to be seen how this will change things but one thing is for sure, charging insurance premiums is being revolutionized. Until next time be careful out there and know your risks. K

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