Whenever red light cameras appear on street corners, there are howls of complaint. These machines are taking photographs of drivers without their consent. More interestingly, they also prove where the drivers are at a particular time. In other contexts, this could prove very damaging as alibis offered to spouses and partners are suddenly shown untrue when the ticket arrives. The fact these cameras are shown to reduce the number of accidents at junctions seems to be overlooked. People prefer the idea they are not being observed by Big Brother to being able to drive more safely on the roads.

In a capitalist society like ours, we put a price on everything. If you want to drive a heavy car with a thirsty engine, are you prepared to pay more than $100 for a tankful of gas? For the record, the average price of gas and diesel has been at or around $4 for most of 2011 although the price of regular can be as low as $3.30 in some states. Similarly, if you want to drive a high-powered car with ferocious acceleration, are you prepared to pay the higher premium rates to insure it? So here comes the next big question. Are you prepared to fit new technology to your vehicle to tell your insurer when and how far you drive? As an aside, some insurers have bigger better black boxes also containing a GPS transmitter and equipment to monitor how the vehicle is being driven. All this information is transmitted to the insurer in real time so, if anyone wanted to know where you were, some insurers could give a precise location. This also provides actual evidence of law-breaking. At a trivial level, it records every time you go over the speed limit. Should you be involved in an accident where someone dies, the bigger systems record whether you braked sharply, swerved violently or did anything else unusual. Like the black boxes in an airplane, it would allow investigators to create a very precise model of how the vehicle was being driven when the death occurred. It could be the difference between your statement to the police being believed and a conviction.

One of the pioneers of this type of technology is Progressive Insurance and it has just released the latest analysis of driving habits compiled from the data it collects. As you will probably be aware, most insurers offer discounts if you prove you drive less than 12,000 miles per year. This discount was given to half the drivers. Similarly, the majority of drivers claim they never drive between midnight and 4 am — the most dangerous time on the roads. This is also confirmed by the technology. In other words, if you agree to fit technology supplied by Progressive or any of the other insurers, you will potentially gain almost immediate access to all the discounts based on low mileage, the time you drive and the safety of your driving. So, when you are working through the next batch of car insurance quotes, look for the pay-as-you-drive options. If you are prepared to sacrifice some of your privacy, the savings can be significant. As a good capitalist, does a price incentive change your behavior when you see the savings in your auto insurance quotes?