Tuesday

I Have Seen The Future Of Automobile Insurance

Prediction: in a (very?) few years, it will be difficult to get automobile insurance without having to accept one of those plugin monitors. Indeed at some point, it may even be mandatory or at least de rigueur.

The two sets of TV commercials I see currently from Esurance and Progressive point out just how doggone equitable it is; your good driving ensures maximum discounts - and that wee plug-in thingamajigger is on your side, don't you know.

The devices record your driving habits - speed, harsh braking, distance traveled, etc. - and allow the insurance companies to calculate their risk much more effectively than by relying on historical aggregate data, as they traditionally would.

Insurance companies understandably love that ability, and for some drivers it may indeed lead to lower premiums, or at least make them think a bit more about how heavy that right foot should be. At least at first.

But you just know that over time, once the majority of drivers are using these devices, the premiums will creep up. Why wouldn't they? That's the way things work. Perhaps, in the coming years, the next step will be "Well, now, Mrs Smith, if you have a self-drive car, you rates could be quite a bit better..."

Google self-drive prototype

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