For decades, one of the main factors contributing to the cost of your auto insurance has been your driving record. If you had been driving for years and had a clean record, your rates were low. If you had not been driving very long or had a bad driving record, then your rates were much higher.
New tech, however, may soon change the relationship between official driving records and auto insurance costs.
Young people have long argued that they are unfairly treated by the auto insurance industry in that they are charged more – even if they had a clean driving record – simply because they did not have years of driving history. Insurance companies claimed they simply had no way of knowing if someone was a good driver until they had a long driving record.
But companies in the UK have come up with a different way to set car insurance prices for young drivers – and if this migrates to America, young and new drivers may no longer have to worry about the length of their driving records.
Called black box technology, what happens is that you agree to let the insurance company install a tiny device in your car that transmits to your cell phone, and then directly to the insurance company.
It monitors when you drive and how you drive. Then, if the device determines that you are a safe driver, your rates go down. However, if it catches you speeding, running stop signs or driving home from bars late at night, your rates will go up.
Of course, if your driving records are bad, this won’t help you that much. But if you have a clean, but short driving record, this could be help you save on auto insurance.
To find out what’s on your driving records, you can use our free driving records search service.