Pay As You Drive “Black Boxes” Threaten Driver Privacy

The California Department of Insurance (DOI) is considering regulations that would enable insurance prices to depend on the precise number of miles a car is driven in a given billing period. But in implementing these "Pay As You Drive" regulations, the DOI appears poised to empower insurance companies to require customers' cars to be outfitted with "black-box" devices that could transmit back to the insurance companies all sorts of data about car motion (acceleration, braking, and so forth) as well as driver behavior (steering and seat-belt wearing).

Although DOI has retreated from its prior position that these devices should track your location – a definite improvement – it's still true that every car already has a reliable, tamper-resistant device that verifies actual mileage: an odometer.

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