A black box can detect a driver’s speed, location, acceleration, braking, cornering, daily mileage and other driving habits. Car insurance companies use the information black boxes detect to determine premiums and discounts for drivers participating in telematics insurance programs, also called usage-based insurance.
A Black Box Can Detect:
- Driving times
- Braking habits
- Cornering habits
- Acceleration habits
- Daily mileage
Different insurance companies will use the data collected by black boxes for different reasons, however. For instance, some insurance companies use the data detected by black boxes to calculate either a rate increase or a discount for customers, based on how safe or risky their driving habits are. Other companies won’t punish bad drivers, using black box data only as a source of potential discounts.
Finally, it’s important to note that a black box telematics device is different from an event data recorder (EDR), which is also called a “black box.” EDR black boxes are crash-resistant devices that record data points about the moments before, during, and after an accident – like a vehicle’s speed, brake application and throttle position, as well as if seat belts were in use, if airbags were deployed and other variables. These devices are only meant to be used by law enforcement and insurance companies to extract data about a crash, and are not something the average driver would access.
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