Skip to main content
#
First Casualty Insurance Group
 Insurance Blog 
Jan
28
2013
Monday, January 28 2013
Your daily travel routine is not much different than many others’. You get up and start the car, pickup, SUV or hybrid, leave the garage or parking spot and head to work. Perhaps you pop out somewhere for lunch and, later, back home. Hey, it’s the weekend, so maybe you take a day trip to see relatives or go to a nearby state park and do some camping. Maybe you stay in town and decide to enjoy the local music and clubbing scene. Who knows what adventures await for you and your vehicle? Well, increasingly, your insurer does.

For well over a decade car manufacturers have, without much publicity, manufactured and installed special boxes in your vehicles called event data recorders or EDRs. Though less sophisticated, they are similar to “black boxes” used on aircraft. While they aren’t equipped for tracking you in a way you might expect from a spy attempt, they do perform at a level that may surprise vehicle owners.

EDRs can capture a large amount of information about a vehicle, particularly information about what occurs before a traffic accident. When vehicles are repaired or prior to being sent for salvage, EDRs can be removed, have their data reviewed and statistics be reported on the speed of vehicle, time of incident, whether brakes were applied, road surface response and other details.

While a vehicle is operated without incident, the data is, at some pre-set limit, written over. However, should an accident occur, the information is frozen and maintains the pre-accident data. Manufacturers typically use the information to study vehicle response. It is meant to assist with future vehicle development. However, increasingly, authorities and private insurers have moved to get access to the information and use it for crime and claims investigation respectively.

An interesting twist involves privacy issues. Many vehicle owners are unaware of EDRs and their purpose. A larger issue is the ownership of the information. Manufacturers treat the information as proprietary and do not share it with vehicle owners. Authorities and insurers get legal access to the information, yet vehicle owners do not. Currently, lawsuits are arising regarding whether the use of such information and the existence of EDRs constitute invasion of privacy.

As technology becomes more pervasive and advanced, both insurance companies and insurance consumers should be more aware of its impact on their business relationship.


COPYRIGHT: Insurance Publishing Plus, Inc. 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.
Posted by: AT 09:06 am   |  Permalink   |  0 Comments  |  Email
Comments:

Post comment
Name
 *
Email Address

Message
(max 750 characters)
*
* Required Fields
Note: All comments are subject to approval. Your comment will not appear until it has been approved.

    Disclaimer: Please note that completion of the following request for information does not constitute the purchase of insurance. No coverage may be added, changed or bound as a result of submitting this request for information or quotation of insurance. All coverage must be confirmed by the agency in writing subject to an acceptable signed application meeting the underwriting guidelines of the Insurance Company. First Casualty Insurance Group is licensed in the states of North Carolina, South Carolina and Virginia. No solicitation of insurance is being made outside of this these states.

    Statements on this web site as to policies and coverage provide general information only. This information is not an offer to sell insurance. Insurance coverage cannot be bound or changed via submission of any online form/application provided on this site or otherwise, email, voicemail or facsimile. No binder, insurance policy, change, addition, and/or deletion to insurance coverage go into effect unless and until confirmed directly by a licensed agent. Any proposal of insurance we may present to you will be based upon the information you provide to us via this online form/application and/or in other communications with us. Please contact our office at (800) 352-3416 to discuss specific coverage details and your insurance needs. All coverage is subject to terms, conditions and, exclusions of the actual policy issued. Not all policies or coverage is available in every state. Information provided on this site does not constitute professional advice; if you have legal, tax or financial planning questions; you should contact an appropriate professional. Any hypertext links to other sites are provided as a convenience only; we have no control over those sites and do not endorse or guarantee any information provided by those site.
     
    190-A Turner Street  |  Southern Pines, NC 28387  |  1-800-352-3416
    fciginfo@fcignc.com
    Privacy Policy | Copyright Information | Notices
    First Casualty Insurance Group 2007


    Easy Online Site Builder