Lower Truck Insurance Costs With New Black Box Technology?
Black box type recording equipment is being used by a number of hauliers and couriers in an attempt to combat insurance fraud. According to Sky News, insurance fraud has risen 70% in the last three years, so some insurers are giving away free recorders with insurance policies. Whether a driver will benefit from cheaper truck insurance through using this claim depends on whether the risk of a claim is reduced by the use of this technology.
Wide angle video recording is included in the technology, and constantly records the journey. The technology overwrites the earliest recorded data once it has reached capacity. To prevent impacts being overwritten if the technology is reused, the technology saves a period of footage before and after the impact, and marks it as read only. Also, for use in minor collisions that do not trigger this save procedure, there is a ‘panic’ button to perform the same act.
The speed of the vehicle, the breaking strength and time and overall driving time are also recorded by the technology. The technology can therefore be used to demonstrate what happened before and after a collision, because this data is also saved on impact.
One argument might be that the introduction of this technology would not reduce the chance of an accident happening, but reduce false or fraudulent insurance claims being made. Upon impact the technology, which is constantly recording, saves a section of footage and data a few minutes before and after an incident. Having this information as evidence would support or challenge any claim made, ensuring that any insurance claims made are genuine. This could reduce the loss ratio insurance companies experience through the elimination of false or fraudulent insurance claims.
However, evidence has been gathered that suggests that drivers are more careful if they are being monitored by telemetric technology because if they are found to be driving dangerously then they risk losing their job. Therefore, if the technology results in more careful drivers, it surely will be responsible for a drop in the number of collisions.
A lower rate of fraudulent claims as a result of this technology means the insurance companies should expect fewer losses, leading to cheaper premiums and therefore cheaper overall insurance.