Smartbox Technology

Insurance companies are implementing smartbox technology so good drivers can benefit from cheap insurance rates.

The smartbox, similar to a black box for airplanes, records details about how your car is driven, which can result in cheap car insurance for responsible drivers.

The device is connected to the electronics in your car and collects a wide criteria of information such as time, speed, braking, cornering, acceleration and location.

The smartbox data is wireless transferred in real time to the insurance company and provides a profile of when, where and how you drive. This profile is then used to compare insurance rates and to reward low-risk driving behavior with cheap insurance rates.

Drivers are high-risk when they drive irresponsibly such as speeding, frequent lane changing, driving in high-risk locations or at high-risk times such as in heavy traffic or late at night.

These new electronic inventions are intended to replace the standard practice of categorizing drivers into group behavior to determine insurance coverage and premium payments.

For example, young drivers are more likely to drive fast, drive at night. and use a cell phone while driving. Statistically, young drivers are more likely to cause an accident so insurance companies charge them higher rates to cover the costs of accident claims.

So even if you're a young, responsible driver, you will pay high insurance rates because of group behavior.

This technology allows you to provide proof that your driving behavior doesn't fit the pattern of your demographic group.

All the information collected about your driving can be viewed online - including what you're doing well and what could be improved. Your insurance premium is then calculated according to your driving profile.