'Black box for cars' could reduce insurance premiums

Mozo

Wednesday 14 July 2010

A new "black box for cars" that is currently being developed by computer giant Intel could cut down on car insurance premiums by recording a vehicle’s movements prior to a crash.

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According to a report by Autocar, the black box would record details of the throttle position, brake pressure and steering inputs at the moment of impact, with the Intel team even going as far as to suggest that the technology could be constantly connected to the internet so that the authorities and other motorists could be automatically alerted to car crash locations.

Commenting on the report, CarAdvice.com.au said: "This could put an end to all car accident mysteries and help reduce hazards on the road."

It was also noted that the black box technology would affect the decision of Aussies looking to compare car insurance, with policy processing times likely to fall if it could be successfully implemented.

An insurance representative also told Autocar that while the innovation could potentially lead to a reduction in insurance premiums, any such fall would only occur if there were not any additional repair costs to factor in due to the technology placed in the car.

The news comes after it was revealed last week that retail giants Woolworths and Myer Holdings are planning to enter Australia’s insurance market.

This article is brought to you by Mozo – Helping you compare car insuranceADNFCR-1761-ID-19889845-ADNFCR

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