Vehicle-to-Vehicle Communication Could Revolutionize Car Insurance

NEW YORK (MainStreet) — Vehicle-to-vehicle (V2V) communications will not only revolutionize how consumers drive as more cars communicate with each other, it will also speed up the adoption of usage-based insurance (UBI).

As more automobile manufacturers include wireless technology in their vehicles allowing them to communicate to each other and warning drivers of potential hazards, more accidents and injuries could be prevented in the future.

The National Highway Traffic Safety Administration said that this technology could help avoid or mitigate 70% to 80% of vehicle crashes involving unimpaired drivers. The technology only includes information about safety, but does not include exchanging or recording personal information, tracking the movements of the vehicle and does not identify them.

This new technology could benefit consumers because auto insurers would likely give substantial discounts for driving a car with V2V communications capabilities, said senior analyst Laura Adams.

"Customers would potentially have a lot to gain if they are choosing to drive a car with these features and insurance companies may offer substantial discounts to consumers who drive these cars," she said. "If consumers opt for these features, it could really take off. However, the technology needs mass adoption to really affect rates."

While this technology could help lower insurance costs, some consumers are already expressing concerns that it would pose privacy issues and could result in authorities tracking your speed, whether you are following too closely to another car and other movements, Adams said.

The benefits from this cutting edge technology will likely outweigh any privacy issues because the V2V communications will help reduce many crashes and claims and will warn drivers to take preemptive action and could help save many lives each year, she said.

"The technology has worked very well in the real world during tests," Adams said. "There are more pros than cons that can come out of this. Consumers can stay safe and save money if they are willing to give up some information to let people know where they are on the road."

If you liked this article you might like

What Does Boston Have Against Happy Hour? And Other Obscure Laws

These Stocks Pay You to Own Them

These Are the Top 50 Jobs in the U.S. Right Now

Low-Cost Loans Help Hurricane Victims Rebuild