Telematics is a new method brought about by some insurance companies to charge premiums from clients based on the driving behavioral information collected by the device attached to cars. This new method breaks through the usual manner of pricing the insurance policy which involves insurers gathering statistical data and preparing it to check which people fit into what categories. They are then charged premiums accordingly. However, with the usual pricing strategy, there has been a problem of adverse selection (a market failure where bad products are more likely to get selected because of little information to either buyer or the seller), where the insurer does not fully know the risk that the client faces. Telematics can help against the issue of adverse selection depending upon how consumers open up to this policy, and the implementation of such policy may be more effective than the usual insurance pricing policies. Insurance companies make profits by charging premiums to the customers. These companies have to pay to the customers when claims are put forward and insurance companies benefit if they pay less than what they state in the policy. Customers who purchase the insurance often have the private information of how much risk they face that they do not fully share with the insurers in order to avoid high premium charges. This unavailability of private information leads to insurers bearing extra risk for which policyholders do not pay. Therefore, in order to decipher the behaviors of the drivers to figure out the risk, insurers collect information regarding the age, sex, marital status, driving record etc. However, this method is not efficient. The premiums of such policy are not exactly related to the “actual intensity or ris... ... middle of paper ... ...eral trend moves towards using UBI policies, in the future, many people and governments might adhere to Telematics, leaving no choice for aggressive drivers, whereby eliminating the problem of adverse selection. Thus, Telematics can prove to be the solution to the problem of adverse selection and will help set effective insurance premiums that best suit customers. The market failure in the insurance market that has existed for so long may finally be corrected with this policy. Insurers can be surer of the risk that they calculate with Telematics and charge right premiums. As assessed above, this policy may solve the problems of adverse selection and will help the society in general with less accidents, traffic and CO2. Thus, I believe the, with the growing popularity and benefits it has shown, Telematics is a better policy than the usual insurance policies.
In this paper, I will compare three different websites that contain information about cell phone plans. I chose T-mobile, Verizon and Sprint for comparisons. I chose T-Mobile because I am currently using T-mobile as my cell phone plan. I selected Verizon and Sprint because they are the leading competitors of T-mobile.
“When a driver ‘talks and drives’ they are not only putting themselves at risk, they are also putting everyone around them in a dangerous situation” (ComparisonMarket.com). A study conducted last year by the Virginia Tech Transportation Institute, had cameras placed inside one hundred cars and trucks to track drivers' activities before a dangerous event occurred. Research shows users of cell phones while driving caused far more crashes and near misses than non-users. These statistics do not change even if the hand held device becomes hands free by means of a blue tooth or speaker phone. Hands-free cell phones may allow the driver to keep both hands on the wheel however, devices such as headsets or voice activated dialing led to longer dialing times causing the same level of driver distraction. Even though a study released by the Insurance Institute for Highway Safety claims bans on handheld cell phones in many states seem to have had no impact on accident rates, drivers still should not use a hand held phone while driving in the car because car accidents associated with hand held phone use account for nearly three hundred deaths per year showing cell phone users are four times as likely to get into an automobile accident serious enough to cause injury.
Zarate, Vincent R. "Legislators Carefully Call Attention to Risk Posed By Older Drivers." Insurance Advocate 117.22 (2006): 6. Master FILE Premier. Web. 4 April 2014
In his political journal of law, Gregory Odegaard states that “an increased percentage of insured drivers not only reduces insurance costs for all motorists, but also promotes public safety because fewer drivers will flee the scene of accidents” (A Yes or No Answer: A Plea to End the Oversimplification of the Debate on Licensing Aliens).... ... middle of paper ... ... Works Cited Barteldes, Ernest.
Ring! Ring! Hello. Every second billions of cell phones calls occur across the globe. Cell phones have made it so that humans can communicate with each other at ease. Since the telephone’s invention in 1876, it has made human communication easier and added to the convenience of life. Being able to talk to a person that is hundreds, or even thousands of miles away has enhanced our forms of communication. However, when the invention of the first telephone came about, it was only for the elite and required enormous and heavy equipment in order for it to be operable, thus many did not own one. Telephones became major in the 1900s; and eventually a new innovation, the cellular phone, came about in 1973, but still a handful of people did not rely on them, or care for them. The first cell phone was of considerable size and was not available for everyone until around 1992. There are close to 6.8 billion cell phone subscriptions currently and most phones are considered smart phones, cell phones that integrate email, internet, and apps on a touch screen handheld device. The volume of subscriptions of phones are rapidly growing. With the
Awareness, education, and knowledge are powerful tools that we have the ability to utilize. There is a tremendous amount of data on crashes involving cell phones. Unfortunately, there is a lot of under-reporting by insurance companies, and this data does not capture the full extent of the problem. Giving policymakers inaccurate data when considering the issues and making changes regarding the law. If more drivers were honest and forthcoming about the actual events leading up to an accident, our lawmakers would have accurate data and more of a reason to implement changes.
Inventors hope to help people with autonomous cars because “autonomous cars can do things that human drivers can’t” (qtd. in “Making Robot Cars More Human). One of the advantages that driverless cars have is that “They can see through fog or other inclement weather, and sense a stalled car or other hazard ahead and take appropriate action” (qtd. in “Making Robot Cars More Human). Harsh weather conditions make it difficult and dangerous for people to drive, however, the car’s ability to drive through inclement weather “frees the user’s time, creates opportunities for individuals with less mobility, and increases overall road safety” (Bose 1326). With all the technology and software in the car, it can “improve road traffic system[s] and reduces road accidents” (Kumar). One of the purposes for creating the driverless car was to help “make lives easier for senior citizens, people with disabilities, people who are ill, or people who are under influence of alcohol” (Kumar). It can be frightening to know that that we share share our roads with drivers that could potentially endanger our lives as well as other people’s lives. How can people not feel a sense of worry when “cars kill roughly 32,000 people a year in the U.S.” (Fisher 60)? Drivers who text while driving or drink and drive greatly impact the safety of other people, and Google hopes to reduces the risk of accidents and save lives with the
The wireless communications industry is perhaps matched only by the personal computer field in the rate at which new products and features are being introduced to the marketplace. What was once a novelty, used primarily by businesses, has now become commonplace among the masses. Today, cellular phones are owned by more than 114 million Americans according the Cellular Telecommunications & Internet Association reports . One of the advantages of having a cellular/mobile phone is that time spent commuting, caught up in traffic and traveling could now be productive. In addition, it increases the sense of security for people driving alone or concerned about vehicle breakdowns.
Most will agree not paying attention to the road while driving is dangerous yet many people still use a cell phone while driving. Over the past few years researchers have tried proving the statement “Cell phones are dangerous while driving” to be true and although hard evidence is provided, many skeptics argue facts that do not contribute to the argument. Skeptics will claim many other activities are more distracting than cell phone use such as doing make-up and eating. However, Phone use while driving accounts for a large percentage of auto-mobile accidents and is relatable to playing Russian roulette. A trustworthy expert on this issue is an Auto Insurance Lawyer. Auto-insurance companies state that the number one reason for an accident is
The use of technology makes our daily tasks easier, such as a better sense of direction while driving via a GPS, safety features in our cars such as Auto Drive and Auto Park. These technologies have made driving an easier and enjoyable experience as well as reducing our chances of getting into accidents. The research presented in the following article “Driven to Distraction [in car technology]” provided surprising conclusions. Professor John D Lee from the University of Iowa states the following issue: “Technology is changing very quickly. Many of these things coming into the car were not designed to be used in it.”(Edwards 8). He proves that there are a lot of in car technologies in today’s society that can demand our full attention without us even knowing, and can lead to tremendous consequences that can become dangerous distractions on the road. Satellite navigation (GPS) makes our lives easier because it can give us the correct directions to a desired address. This is unlike the past where the navigationally challenged would consider it a nightmare to drive to a new location.
J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.
Automotive executives touting self-driving cars as a way to make commuting more productive or relaxing may want to consider another potential marketing pitch: safety (Hirschauge, 2016). The biggest reason why these cars will make a safer world is that accident rates will enormously drop. There is a lot of bad behavior a driver exhibit behind the wheel, and a computer is actually an ideal motorist. Since 81 percent of car crashes are the result of human error, computers would take a lot of danger out of the equation entirely. Also, some of the major causes of accidents are drivers who become ill at the time of driving. Some of the examples of this would be a seizure, heart attack, diabetic reactions, fainting, and high or low blood pressure. Autonomous cars will surely remedy these types of occurrences making us
My mobile phone network coverage allows me to make a call wherever I want, and the call is never cut off by the network. Independent surveys show that it has the best signal quality with excellent call clarity. The network covers 99 percent of the population, and it has installed more transmitters than any other digital network company. They guarantee that they work the best; in fact, they will even add a free minute of talk time if the call is ever lost. International and off-peak calls are the cheapest in the area. The company has been voted number 1 in customer satisfaction for 5 years in a row.
Making a telephone call no longer should conjure up visions of operators connecting cables by hand or even of electrical signals causing relays to click into place and effect connections during dialing. The telephone system now is just a multilevel computer network with software switches in the network nodes to route calls get through much more quickly and reliably than they did in the past. A disadvantage is the potential for dramatic and widespread failures; for as has happened.
Cell phones are wonderment 's of technological advances over time. Though when do Cell phones become a tool that could be used to cause suffering, like in this case getting me in trouble. None the less, the time I was used my phone the wrong way not only got me in to trouble, but made me realize that I should think before I do.