Black Box Technology, Good driving habits can save you money

August 11th, 2015  |  Auto

The future is now. Auto insurance companies can now track your driving behaviour in real time when you opt into a usage-based insurance program. Insurers in provinces like Ontario and Quebec are offering customers a chance to prove their good driving habits with black box technology.

When you sign up for auto insurance and volunteer for the usage-based option, the company gives you a “black box” that plugs into your car. As you drive, it measures how fast you drive, how hard you brake, and where you travel.

Car consumer expert Phil Edmonston thinks it’s about time. He explains that insurance premiums have long been based on factors like age and gender because there was no way to track your actual driving tendencies.

"...It is a fairer system that's based upon your actual usage of the vehicle rather than your occupation, your gender,”he said.

The insurance company is not allowed to penalize you with a higher premium, however. "The data that's collected is only ever used to discount your rate," said CAA spokesperson Amy Orfanakos. "If we pull the data and see you speed, we never penalize you."

Usage-based insurance can be especially beneficial to new Canadians and inexperienced drivers who have no record and high premiums. They can offer you discounts if you are a safe and responsible driver. Up to 25% off your premium, as a matter of fact.

Image Courtesy of Adobe Stock