AAA Study: Teen Drivers with Passengers are Riskier

By SARAH CRICHTON  sarah.crichton@newsday.com

 

About one-third of all fatal car crashes are caused by speeding, but for 16- and 17-year-old drivers, the numbers rise to almost half when there are three or more passengers, according to a new study. 

Motor vehicle crashes are the leading cause of death for teens, according to the Federal Highway Safety Administration.

This week is National Teen Driver Safety Week, and the AAA Foundation for Traffic Safety released its latest findings to highlight how the prevalence of risky behavior generally grows for drivers ages 16 and 17 when teen passengers are present.

For 16- and 17-year-old drivers involved in fatal crashes, the analysis found:

Prevalence of speeding increased from 30 percent with no passengers to 44 percent with two and to 48 percent with three or more.

Prevalence of alcohol similarly rose from 13 percent to 17 percent and 18 percent.

The foundation analyzed data on fatal crashes in the United States from 2005 through 2010. Researchers found 9,578 drivers age 16 and 17 were involved in fatal crashes, and that 3,994 of these included at least one teen passenger. All risk factors were more common among male drivers.

New York State's graduated driver licensing program, which took effect Sept. 1, 2003, limits teens with learner permits and junior licenses to driving only from 5 a.m. to 9 p.m. in Nassau and Suffolk, except for limited travel to work, school and driver's education, with proof required. It also caps the number of passengers under 21, among other restrictions.

An earlier foundation report found loud conversation and horseplay were substantially more common with multiple teen passengers than with siblings or adult passengers.

Re-posted by Vincent Rush of Lynx Telematics, developers of the LynxSafe Teen Driving Monitor.

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These are some of the very reasons that we developed the LynxSafe Teen Driving Monitor.

One of the scariest days in any parent’s life is that moment you hand them the keys for their first night out on the town.

As my own Mother has often said; “I would lie awake every night, until I heard the garage door open. Only then, could I get good nights sleep!”

Actually, if Mom had known the way I was driving; those nights would have been even more restless!

After a personal family tragedy involving teen driving, I began to really think about my two children that had yet to begin the driving process and made the determination that I would not sit back and do nothing, other than say a prayer and keep my fingers crossed.

Telematics has been on the rise over the past few years and has really made a leap into mainstream public, thanks to a gal named Flo and Progressive Insurance’s product offering called “Snap Shot”

“Snap Shot” is a product that simply plugs into your vehicles diagnostic port and harvests data, based on driving habits, for the insurance company.

Known as UBI (User Based Insurance), the insurance company’s actuaries will assign a risk assessment profile to the individual driver and either slightly increase or lower premiums based on the data accumulated.

As one insurance company CEO recently remarked to me; “Telematics is to the insurance industry, what credit score was five years ago.”

Credit scores used to be accurate indicators of a drivers risk profile and predictors of the likelihood to be involved in an accident.

However, now that credit laws and new regulations on lending have changed due to the economy, many people that were previously considered “good credit profiles” are now considered marginal to poor, due to no fault of their own.

What was once an accurate indicator of risk factor for an individual driver was now becoming viewed as increasingly inaccurate?

Telematics provided a “game changer” to the insurance industry, with accurate indisputable driver profiling as a result of individual driving habits and real time monitoring.

While this is a great product and many of the top insurance companies are now moving to a UBI model, there is still a basic flaw to me; As a parent, I want to know my kid is a bad driver….the second he is a bad driver and not…2 weeks after it’s too late, when my insurance company tells me his driver score went down 3 points.

The LynxSafe Teen Driving Monitor, by Lynx Telematics has allowed us to develop device that simply plugs into the drivers diagnostic port that allows a parent to monitor in real-time EXACTLY what their teen drivers are doing behind the wheel.

Once the LynxSafe device is installed, a parent logs onto their personal website and sets up parameters or rules, that they expect their teenager to follow when behind the wheel.

Along with rules and boundaries, a parent or loved one, chooses how they want to be notified, either by smart phone, with live map locations when violations occur, or by any internet enabled device. As for me, I like seeing on my smart phone exactly where my kid is…the moment they have broken a rule.

For example, I want to eliminate his or her ability to text and drive or browse his web enabled smart phone, I can now take full control over that deadly habit with our Anti-Texting” technology.

Next, thanks to a “Speed by Street” feature, I only want my son to drive no more than 5mph over the speed limit on any given highway or street.

With our “On Star” like capabilities, I can set up a collision alert and have the peace of mind to know that if any fender bender occurs, our 24/7 call center has already contacted my child before I even have a chance to call.

I can also set up other parameters such as excessive RPM’s, jack rabbit starts, panic breaking, cornering too hard as well as a special feature called “Boundaries”

If my son or daughter happens to be grounded and I only want to allow them to drive back and forth to school and work, I can set up a boundary that will notify me the second they leave that zone or if they cut out of school early, I will know the moment they leave the lot.

As a parent, I can also monitor specific engine diagnostics such as low fluids, mechanical glitches and head off future expensive repairs.

Or if my daughter is at the movies and leaves her lights on, I can be at home and receive an urgent alert that her battery has dipped below 12 volts thereby calling her to go start her car and avoid the potentially unsafe practice of asking a stranger in a movie parking lot at 11:30pm for assistance.

And thanks to a login screen that shows a live GPS location of where my monitored vehicle is, I now never have to hear that excuse; “Sorry Dad, my phone battery was dead.” Or “I apparently had no coverage.”

By the way, guess what car my Daughter will use for her dates!

Our goal at LynxSafe, is not to “bust” our kids and have cause to punish them rather to let them know that Mom and Dad, are still along for the ride.

As our slogan says; “They have the license, they have the keys…and now you have peace of mind!”

For more information on the LynxSafe Product by LynxTelematics, contact Vincent Rush at (513) 965-6318 or at vrush@lynxtelematics.com or visit http://lynxtelematics.com

Taxes, Lawsuits & Telematics: Savings through Documentation

From fuel tax rebates to IFTA calculations and beyond, the proof is in the telematics data  

By Bud Sims
Director of Construction and Mining

Every contractor knows the value of telematics for squeezing waste out of fleet operations, but there’s more to the savings story than improving asset allocation, optimizing preventive maintenance scheduling, or identifying wasteful fuel and/or idling practices. In a series of benefits unrelated to fleet management, telematics systems can also help maximize off-road fuel tax reimbursements, streamline IFTA filings and other regulatory reporting, combat idling penalties, and even thwart lawsuits for breaching the boundaries of a job site. 

The reason is simple: data.

In a kill-two-birds-with-one-stone scenario, the same data collected to deliver core telematics functionality also supplies a complete audit trail of equipment utilization by location. Built-in telematics capabilities such as GPS asset tracking and geofencing that defines the perimeter of each job site or work zone combine to provide detailed documentation that is difficult or in some cases impossible to acquire from any other source.

That documentation problem recently cost one California contractor nearly $4,000 in quarterly off-road fuel tax credits for clear fuel used across its 200-machine fleet. The State Board of Equalization rejected the firm’s rebate request because it was based on a guesstimate of the fleet’s off-highway use. With no way to prove the amount of fuel qualifying for the 18-cent-per-gallon diesel rebate, the contractor came up empty-handed.

With telematics, that proof would have been available with a few clicks, and the firm would have added $4,000 to its bottom line.

Data needed for this and other non-operations-related purposes can be quickly retrieved from standard or custom telematics reports, or automatically exported to third-party services that specialize in various types of government claims filing. This saves time, eliminates guesswork, and provides irrefutable evidence of how equipment was used in the field for various tax, regulatory and legal applications.

1 – Off-road fuel tax rebates

As just mentioned, for example, telematics data facilitates tax refund or credit requests for undyed fuel that is used off-highway. Contractors are entitled to reimbursements of up to 35 cents per gallon, depending on the state, because off-road use does not contribute to the costs of planning, constructing and maintaining publicly funded roadways for which fuel taxes are earmarked. But many firms do not even try to recoup these costs because they lack easily accessible information on off-road use, the reporting is too onerous to justify the effort or both.

Telematics solves the problem with site utilization reports that show precisely where each asset is deployed and for how long, leveraging the geofencing feature of the telematics system. The total off-road time for any given quarter can be calculated by adding the hours of all construction equipment on all job sites. Third-party fuel management systems that quantify fuel burn can further validate the calculations.

In addition, advanced telematics systems that track both on-and off-road vehicle use in the same application can compute off-road use of on-road vehicles such as generators and telephone repair trucks by monitoring functions like PTO and hydraulics. With this capability, you can augment the size of your rebate by ensuring that every asset involved in off-road activities is included in the calculation.

2 – IFTA mileage tax reporting 

For contractors that cross state lines in moving equipment from job to job, another tax-related use for telematics involves the compilation of quarterly IFTA (International Fuel Tax Agreement) reports designed to ensure that each state receives its proper share of taxes for miles traveled on its roads. Since these reports require information on mileage driven in each jurisdiction, it is necessary to know that your low-beds traveled 500 miles in California and 250 miles in Arizona (or whatever) for the quarter.

This information can be easily determined from the data captured by the GPS-based telematics tracking devices installed in each asset. The raw telematics data can be delivered electronically to your firm’s third-party IFTA tax service for processing and report preparation, eliminating the need to maintain and share trip sheets. This reduces overhead for drivers as well as clerical staff, prevents manual recording or data entry errors, provides an auditable data trail, and streamlines IFTA reporting overall.

3 – Idling penalty avoidance 

In the more than 30 states with anti-idling policies on the books, telematics data can also help keep the idling ‘police’ at bay by monitoring equipment idle times. In California, for example, idling a diesel-powered machine for more than five minutes can cost $300 per occurrence or up to $10,000 for a machine with multiple violations. Having the data to nip the problem in the bud, or fight an undeserved penalty, can help avoid fines as well as trim fuel expenses.

One source of this information is the telematics dashboard. Typically, idling rates can be seen in real time across the entire fleet and flagged with visual indicators when levels exceed user-defined thresholds. Some dashboards also allow users to dynamically drill down to idle activity by vehicle. If there is a spotter enforcing anti-idling regulations on the job site, the job foreman or other personnel can use this information to intercede before excessive idle times lead to a fine.

Longer-term idling patterns can be seen in telematics idle reports that document idle start and end times, duration and location for each asset. This information can be used to modify operator behavior and avoid future penalties.

4 – Lawsuit protection 

Another area where telematics data can save contractors money above and beyond core fleet management functions involves averting fines and lawsuits associated with violations of leaseholder or government boundaries. In one recent case, for example, a mining operation was fined more than $2 million over a two-month period for inadvertently digging outside its leased property line. In other situations, contractors are subject to reprisals for infringing on environmentally sensitive areas like wetlands located adjacent to or even within a job site. 

Telematics-based geofencing can save the day by making it possible to issue an alert if a forbidden boundary is crossed. Geofences can be established around a job site, work zone or within a larger geofence if an off-limits area lies within the work site. Geofence reports can also defend a contractor against unjustified trespassing accusations by proving that equipment operators did not cross invisible boundary lines.   

Capabilities like these can substantially extend the value of a telematics investment by reducing tax and regulatory paperwork, lowering the risk of penalties and fines, and even creating revenue from off-road fuel tax rebates. It’s not the primary driver behind a telematics deployment, but it’s a major fringe benefit that can reduce the cost of doing business and – in some cases – keep contractors out of trouble.

Insurance telematics could "flip the underwriting model on its head"!

Your insurance provider may soon be asking for access to your telematics data. What’s in it for you?
By: James Menzies of “Truck News” 2012-08-20 



Insurance brokers and providers may soon be asking fleets for access to their telematics data, in an effort to provide more accurate insurance pricing and to help fleets better utilize that data.
It’s a bold new approach that’s already happening in other parts of the world, including Europe and Australia. Here in Canada, Industrial Alliance made waves earlier this year, when it launched a program in Quebec that allowed young drivers to install data recorders in their car and then pay premiums based on their specific driving habits.

Truck News has learned that the concept – sometimes referred to as Pay How You Drive or Pay As You Drive – will soon be rolled out to the Canadian trucking industry. Insurers realize telematics provides the basis for a more accurate means of underwriting risk. Today, brokers and insurers collect the same old data (such as CVOR and CSA scores as well as a five-year claims history) to determine premiums. But insurers have come to realize that basing premiums on past claims isn’t the best way to do things. For starters, it doesn’t address those fleets that employ risky drivers but have avoided accidents through sheer luck.

Using telematics, insurance providers will be able to identify risky driving behavior that will most likely result in accident over time and can push a fleet to intervene with offending drivers and address unsafe behavior before that accident occurs. Insurers who tap into their customers’ telematics data will be looking for information on speed, hard braking, abrupt lane changes and rapid acceleration, among other risky behaviors.

“From an underwriting standpoint, it flips the underwriting model on its head,” Scott Cober, vice-president, national leader with Marsh Canada’s trucking practice told Truck News in an interview. “It becomes more of a predictive underwriting model.”

At the very least, using telematics to determine insurance pricing will allow insurers to charge premiums that better reflect a fleet’s likelihood of being involved in a crash. But ideally, insurance providers will use that valuable information to alert a fleet to worrisome trends and encourage interventions before such accidents even occur.

“Fleet insurance underwriters currently review driver abstracts for tickets and look at accidents to assess a high-risk driver in the fleet,” Cober explained. “A fleet’s risky drivers may not be the ones with tickets or accidents, but those who are trending towards bad behaviors on the road – making unsafe lane changes, cornering at high speeds, etc. These drivers are potentially your future accidents and claims. The driver behavior data (collected through telematics) will help safety managers prevent accidents before they happen.”

In most cases, insurers will be able to tap into data collected by existing and widely used telematics systems. Other programs may encourage fleets to invest in specific real-time monitoring and coaching systems such as those that alert drivers to risky behaviors in the cab as they occur, while also sending reports to the fleet manager. Some “Live View” systems feature an in-cab camera that captures video of what transpired in the moments immediately before and after a risky maneuver occurred. In-cab camera technology provides insurers with a useful tool when trying to reconstruct an accident or determine who was at fault.

“We’re using that not only as a behavioral tool, but as a claims tool,” Cober said. “For the first time, we’re gaining insight into what happened and we’re seeing drivers become exonerated from the claim. I think video is going to have a fundamental change on the whole claims process. A fleet can say ‘My driver wasn’t at fault, he was cut off by this driver,’ and on the reverse side, he may know the driver was at fault right away and from the insurance standpoint we can set the reserve up and get ready to pay the claim.”

Some fleets, naturally, will be reluctant to share their telematics data with their insurer. But insurance companies insist fleets have plenty to gain by doing so. This applies both to safe fleets (because they’ll pay premiums that better reflect the skills of their driving force) as well as unsafe fleets (because their insurer will work with them to identify unsafe practices and provide corrective training measures proactively).

“The safest fleets are already being very proactive and are more advanced than the other fleets,” Cober said. “But if you have claims, there’s an issue with your drivers on the road. Fleets that want to improve and become more efficient will turn to technology. To be competitive in this marketplace going forward, those fleets are going to have to do this.”

It’s likely that such programs will be voluntarily, at least initially. But don’t rule out the possibility of an insurance provider requiring the use of telematics for fleets with frequent claims.

“I can see possibly in the future, if a fleet cannot control its claims, that an insurer will say ‘We will insure you, but you need to put these measures in’,” Cober predicted. “I can see insurers using that as an underwriting tool.”

Zurich’s Magi says fleets she has spoken to about sharing their telematics data have so far been receptive, though she is quick to point out Zurich insures mostly large fleets with high US exposure, and the majority of those carriers already employ and understand the benefits of collecting and analyzing telematics data.

“I have never had a customer say ‘I’m not giving you the data you need’,” Magi said. “If anything, they’re asking ‘How can you help me analyze this information so I can utilize it better?’ What telematics does is it gives you a granular view of what’s happening with each particular driver and vehicle on a daily basis. You’re going to see a picture there. Insurers are going to see there is something there and it’s to the customer’s benefit to be able to speak with an educated risk services representative who’s going to be able to dig deeper and find out where the big issues are.”

Eventually, insurance providers may look to provide insight into the operational side of a fleet’s business, in ways that extend beyond managing driver behavior. As an example, Magi foresees an opportunity to assist with route planning. Insurers may look at a carrier’s lanes and then suggest a route that avoids litigious states or areas where there are weather-related risks at certain times of the year. Carriers would then be faced with the decision of taking the most direct route and possibly paying a higher premium, or a safer route that will provide insurance savings. All this while meeting the demands of the shipper, which in many cases will be looking for the most expedient delivery of its goods.

“Ideally in the future the technology will get to a point where you look at ‘What is the safest route to get to a point?’ and there’s a charge for that,” Magi said. “If you (as an insurance company) have a true partnership with a customer, you’re going to sit down together and talk about this from a pure business perspective. What is the cost-benefit analysis for your operation to take this particular route versus the potential loss if you take a different route? It factors into their deductible. There are going to be customers that are going to be absolutely operations-minded and some customers will look at route utilization with a holistic approach as to how it’s going to affect their insurance.”

Magi noted insurance, in many cases, is a carrier’s third largest expense and so she expects fleets will be willing to alter their routes to lower costs.

Proponents of insurance telematics insist the data that’s collected and shared will always belong to the carrier.

“This isn’t about Zurich going in and mining information from the customers,” Magi stressed. “The customers can share this information with us if they choose to. Ideally, the purpose of what we’re trying to do is to show them how to better utilize that particular data.”

There are privacy issues, as well, to consider. Cober noted Canada’s stringent privacy laws mean insurers won’t be drilling down to assess drivers on an individual basis, but will be looking at a company’s fleet-wide performance.

“Because of the privacy laws, we are saying to trucking companies “You supply the data to your insurer in a condensed manner without giving driver names, without giving vehicle numbers, just give a holistic view of how the fleet is doing,’ and we’ll take that monthly or quarterly and what we want to see is continuous improvement,” he explained. “Canada has some pretty tough privacy rules.”

While fleet managers may see the benefit in participating in a telematics-based Pay How You Drive-type system, drivers themselves may be more resistant. Cober insisted the systems endorsed by insurers will be sophisticated enough to account for false alerts caused by other motorists.

“We know things happen on the road and it’s going to be quite common to have errors because of third-parties cutting in front (of the truck),” Cober said. He suggested fleets employing driver behavior monitoring use it to reward the best drivers rather than installing the systems for strictly punitive or corrective reasons.

“If it’s seen as a penalty or Big Brother, I think the safety culture of the company won’t flourish,” he noted. “It needs to be promoted as positive reinforcement for the drivers and to reward drivers for good behavior.”

Regardless of how drivers and fleet owners feel about sharing telematics data with their insurer, it seems inevitable. Canada is late to the party, but globally the auto insurance industry is already moving in this direction.

An Oliver Wyman Financial Services report, titled Uneven Road Ahead: Telematics Poised to Reshape Auto Industry, concluded: “As technology costs fall, privacy concerns recede and regulations become more supportive, telematics is fast moving into the mainstream and will fundamentally disrupt the auto insurance business. The threat to late adopters is real: better drivers will enroll in telematics programs, leaving behind a shrinking pool of poorer risks to the traditional insurers.”

The same could be said for trucking companies.

Cober noted that by 2017, it’s expected that new vehicles manufactured in North America will come equipped with some form of telematics hardware already installed, “making the insurance telematics process easier for consumers who may be confused on what actual hardware is required in their vehicle.”

Another objection likely to be faced by insurers is the cost of implementing the necessary technology, particularly for smaller fleets that don’t already employ some form of telematics. But Cober said the cost of the technology is rapidly dropping and the potential savings extend beyond lower insurance costs, delivering a quick payback.

“Traditionally, only the big fleets could afford the technology. But because the technology costs have been dropping, we’re beginning to see the middle market fleets – the fleets with 10-50 power units – can now afford this technology and can see the return on investment,” he said.

Because telematics can improve driver behavior and address bad habits like rapid acceleration and hard braking as well as speeding, Cober said many fleets are realizing fuel savings of 5-10% when employing a telematics system that monitors driver behavior.

“We’re seeing fleets that in the first three to six months, are seeing their investment returned,” Cober said.

And for fleets that proactively monitor and address poor driving habits, the insurance savings will also be tangible, he noted. While premium reductions are generally a reward for lower claims costs achieved over a period of time, Cober said it’s possible insurers will provide some up-front savings for fleets that enroll in a telematics program.

And when fleets discover the additional savings that are achievable by analyzing their telematics data with some help from their insurance provider, Magi said the idea will become an easier sell.
“At the end of the day, really, they’re truckers,” she said. “They want to be able to move freight and run their business. They’re not actuaries that deal with statistics. If we can provide them with the tools and solutions that make it easier for them to very quickly analyze (data) and see a problem, we’ve done them a huge benefit but we’ve also done our bottom line a benefit as well.”

- The above feature article appears in the September issues of Truck News and Truck West

Re-posted by Vincent Rush of VP of Business Development for Lynx Telematics.

Lynx Telematics is a Cincinnati based OEM of Telematic technology and provider of the Geo Tab product along with patented “Anti Texting and Web Browsing” technology for fleet based companies.

Lynx Telematics is also the innovator and pioneer of the Lynx Safe Teen Driving Monitor that grants parents real-time data on their teenagers driving habits while blocking and disabling texting and driving.

For more information, contact Vincent Rush at (513) 965-6318 or by email at vrush@lynxtelematics.com

Crash survivor preaches dangers of texting while driving

By Ron Recinto | The Lookout – Fri, Aug 3, 2012

Chance Bothe knows firsthand the dangers of texting and driving.

The Texas man typed this message to a friend while driving home from college earlier this year, “I need to quit texting because I could die in a car accident and then how would you feel …”

A few seconds later, Bothe’s pickup veered off a bridge and dropped down a 35-foot-deep ravine.
KHOU-TV reports he suffered extensive injuries including a broken neck, a punctured lung, and a fractured face, which would later require extensive reconstruction. He had to learn to walk again, the station reports.

“I’m very lucky that I’m not gone forever,” Bothe, 21, told KHOU-TV on his last day of a six-month rehabilitation in Houston. “I still have things to do in this world.”

One of the first things he’s doing is spreading the word of the dangers of texting and driving.

“They just need to understand, don’t do it. Don’t do it. It’s not worth losing your life,” he said. “I went to my grandmother’s funeral not long ago. And I kept thinking, it kept jumping into my head: ‘I’m surprised that’s not me in that casket.’ I came very close to that. To being gone forever.”

Texting while driving is banned in 39 states and the District of Columbia, according to the Governors Highway Safety Association. Texas does not have a statewide ban on texting while driving. However texting while driving is banned in some municipalities and school zones in the state.

Bothe promised to spread the word about the dangers of texting while behind the wheel so that others can learn from his mistake.

“What people have told me is the reason God didn’t keep you away from this Earth is because you have something special to do,” he told KHOU. And I believe what is special is that I should tell everyone not to text message and drive.”

Re-posted by Vincent Rush of Lynx Telematics

Telematics and Customized UBI Business Models

Susan Kuchinskas looks at open niches within the lucrative UBI space

According to Towers Watson research, insurers representing 60 percent of the personal auto insurance market have implemented a version of a UBI program in at least one state. Many more are running or preparing to run internal UBI pilots. And Ptolemus Group forecasts more than 100 million vehicles will be insured with telematics globally by 2020, generating premiums of approximately $60 billion.

The advantages for consumers and insurers are clear: More accurate ratings of risk factors will lead to lower claims and lower premiums for safe drivers. Technical barriers to these offerings are minimal, but the industry will need to appease consumers and regulators.

Pay-as-you-drive solutions

Many US insurers offer pay-as-you-drive (PAYD), also called usage-based insurance (UBI). This option is available in the majority of states. These plans use a plug-in device to measure actual miles driven: The less you drive, the less you pay for insurance.

Progressive’s PAYD program, SnapShot, provides a free device that drivers plug into their cars for six months; after that, they send it back and the rate based on miles driven is finalized. State Farm’s Drive Safe & Save program uses OnStar to validate mileage, and it just inked a similar deal to let consumers transmit mileage info via Ford Sync.

Because insurance rates have long used driver-reported mileage as one rating factor for evaluating risk and setting rates, PAYD is a relatively easy product to get approved by state regulators. Each state in the US regulates auto insurance independently. (For more on US state regulation, see Insurance telematics: US state regulators tackle UBI [2].) It also makes sense to consumers, because they’re used to this metric. And it doesn’t raise privacy concerns.

Pay-how-you-drive schemes

Things get more interesting, and potentially more lucrative, when insurers use additional ratings factors that allow them to better calculate an individual driver’s risk. Telematics devices incorporating accelerometers and other sensors can provide accurate information about driving style that could impact a consumer’s risk profile. So-called pay-how-you-drive (PHYD) schemes use a variety of factors, including speed, time of day, braking, acceleration and cornering, to paint a more accurate picture.

State Farm’s PHYD plan is called In-Drive, and it uses a device created by Hughes Telematics. In-Drive has rolled out in Illinois and Utah, with more states in the offing. “Obviously, mileage is a good predictor,” says Dick Luedke, spokesman for State Farm. “The more miles you drive, the more likely it is you’re going to file a claim.”

State Farm did quite a bit of testing to find what other factors would be most useful for rating an individual’s risk by installing the devices in the cars of associates across the nation. The secret sauce, of course, is the algorithm each insurer uses to weigh all these factors. Each firm guards them as trade secrets. Luedke says drily, “I doubt we’d be too specific.”

Simply gathering data from telematics devices is not that difficult. Doug VanDagens, director, Connected Services Solutions at Ford Motor Company, says that, while the agreement with State Farm calls for only transmitting mileage information, Ford already can technically accommodate transmission of any metric needed for PHYD. In fact, Ford’s Crew Chief product for fleets, powered by Telogis, provides information on braking, acceleration, maintenance warnings and more.

“Anything happening in the vehicle, we can communicate outside of it,” VanDagens says. It’s easier and cheaper to do so via Sync, he points out, because Sync uses the driver’s cell phone for connectivity. “We can provide all of that relatively easily, as soon as insurance companies want to set up the programs.”

Insurance companies want to take the lead in marketing and managing UBI services. It makes sense since they already have familiar brands as well as the customer base. Most important, they are the ones with relationships with state regulators, keeping track of the myriad regulations and requirements of individual states.

A Company in Cincinnati, Lynx Telematics has developed a device called the Lynx Safe Teen Driving Monitor that can not only provide insurance companies with a UBI telematics device, but is the first of its kind to give parents “real-time” parental control and live monitoring of their teens driving habits, while at the same time, preventing texting and driving.

Vincent Rush of Lynx Telematics discusses the LynxSafe Teen Driving Monitor

Vincent Rush, President of Business Development for Lynx Telematics, commented in Nashville recently that, “While we realize that quality and integrity of data is paramount in the UBI market, we also saw a gigantic void. Many insurance companies have the programs, however parents really have no control over their children’s driving habits, until the company reports back to them. We wanted to bring, not only savings to a parent, but peace of mind as well. As a parent, I don’t want to receive a report about my kids poor driving habits, 3 days after their funeral. I want to know the instant my teen is getting careless. I’ve already had one personal experience and I don’t care to have another”

With the LynxSafe telematic device, "Mom & Dad are now, figuratively in the front passenger seat with their teen driver from the moment they pull out of the driveway”. Rush went on to say that, “Our single user interface model allows Mom and Dad to set parameters as well as receiving immediate text alert and emails when their son or daughter is speeding, driving radically, or in any type of accident as well as experiencing any mechanical break down.”

The manage-how-you-drive model

As consumers get more comfortable with these products, they may shrug off the Big Brother warnings and embrace the manage-how-you-drive (MHYD) model. With MHYD, drivers get feedback that helps them improve and potentially lower their rates.

American Family Insurance says its Teen Safe Driver Program has helped teens reduce risky driving behaviors by 70 percent. The program includes a free in-car device attached to the review mirror. When incidents like extreme braking, cornering, and accelerating too fast—as well as actual crashes—take place, it saves eight seconds of footage prior to the mishap and the four seconds after it. The information is transmitted wirelessly to American Family’s data center for review by driver coaches.

Parents get a weekly driver report card that measures the teen’s performance against safe driving objectives and peer averages. They can log in to see the report, watch video of incidents, and get tips for safer driving that they can share with the kid.

State Farm’s In-Drive, created by Hughes Telematics and currently offered only in the US states of Utah and Illinois, provides an entrée for State Farm into stronger customer relationships and value-added services competitive with OnStar and motor clubs. It offers one-touch emergency response, roadside assistance, stolen vehicle location assistance, vehicle diagnostic alerts and maintenance reminders, plus parental monitoring tools for location services and speed alerts.

It also includes the MHYD program, Drive Safe & Save. In-Drive will provide driving performance data, and the customer’s savings will be based on mileage, turns, acceleration, braking, speed and time of day vehicle is operated.

New revenue streams

While State Farm will provide discounts on rates of up to 50 percent for the safest, lowest-mileage consumers, In-Drive also represents an opportunity for new, recurring revenue streams. The service offers four subscription levels with additional services like stolen vehicle assistance, emergency calling and alerts for events like speeding, with subscription fees from $7 to $22 per month.

Tim Moroney, insurance regulatory attorney with the law firm of Barger & Wolen LLP, thinks these services can help insurers get off the rate-cutting treadmill. “Personalized automotive insurance is very competitive,” Moroney says. “While cheaper premiums are usually the biggest hook, [by coupling services with telematics] you can offer more things. Insurers are now offering concierge benefits. They can do all things automotive and be very creative.”

Insurers could take it even further by offering classes, content, applications and third-party offers. The strategy could be similar to that used by health maintenance organizations that provide weight-loss and smoking cessation classes to members. (For more on new sources of revenue, see Consumers and UBI: The power of value-added services [3] and Telematics and UBI: How to increase consumer acceptance [4].)

Says Frederic Bruneteau, managing director of Ptolemus Consulting Group, “Thanks to insurance telematics, the insurer can become an insurance service provider. Today, the notion of insurance is, ‘They take your money and then you hear from them if you have a problem.’ With telematics, they have a real-time relationship with any policy holder.”

Susan Kuchinskasis a regular contributor to TU.

Fatal Auto Crashes Up Despite Rise In Patrols

Ohio Patrol says many of this year’s 312 victims weren’t using seat belts.

 By Mark Gokavi, Staff Writer, Dayton Daily News

Wednesday, May 9, 2012 

More people are dying on Ohio roads at a significantly higher rate in the first four months of this year after a record-low number of traffic deaths last year. 

The 16.4 percent rise in statewide traffic fatalities in the first third of 2012 comes despite the Ohio Highway Patrol cracking down on drunk driving and seat belt and felony drug violations. 

Plus, the six-county area of Montgomery, Warren, Butler, Preble, Darke and Miami has seen 24 more traffic fatalities — many not wearing seat belts — than during the same period in 2011. Those numbers don’t yet include a recent double fatality in Butler County or a late-April fatal in Greene County. 

“Fatals are a difficult thing for us to curb,” said OHP Lt. Matt Hamilton of the Warren County Post. “We’re aggressive in OVI (Operating a Vehicle while under the Influence of drugs or alcohol) and seat belt enforcement so if that crash does happen, they have the best chance that they have to survive.”

Statewide, provisional OHP statistics show there have been 312 fatalities (from 275 crashes) through four months in 2012. 

That number was 268 in 2011, which became the lowest auto-related fatality year (1,020 deaths from 947 accidents) in Ohio history and also the lowest nationally. 

A national highway safety advocate said Ohio lacks leadership and commitment to strengthen laws. Jackie Gillan, President of Advocates for Highway and Auto Safety, said Ohio is among the worst eight states in that organization’s annual report. 

“Ohio is at the bottom of the barrel because they are lacking so many critical laws like primary enforcement of seat belt, all-rider motorcycle helmet laws, they don’t have major elements of an important teen driving law, they have weak drunk-driving laws,” Gillan said. 

Gillan’s organization supports limits for teen drivers such as night-time and cellphone restrictions, and 16 as the minimum age for learner’s permits. In Ohio, most drunk-driving crimes are misdemeanors unless drivers have multiple offenses. 

Most dead weren’t wearing belts

 

Of the 38 deaths in those six local counties through April that did not involve pedestrians or motorcycles, at least 25 were not wearing seat belts. In four more cases it’s unknown if seat belts were used. The causes of the crashes range from people falling asleep to driving left of center to alcohol-related and excessive speed.

“There’s crashes and it’s people being ejected out of the vehicle and the crashed car, in the compartment, there isn’t any real intrusion or trees or poles or anything, it’s just a damaged car,” said Sgt. Jeff Kramer of the post that serves Montgomery County. “But not having their safety belt on they get ejected out of the windshield or something like that and then the car rolls over on them. 

“I don’t know for sure that they’d be alive had they worn their seat belt, (but) probably there’s a good chance the injuries would be minimal and not fatal. We see this time and time and time again. It’s just a simple thing of clicking your seat belt.” 

Despite seat belt infractions being a secondary offense, enforcement also is up 16.4 percent in Ohio overall and much higher in some counties. 

In Montgomery County, seat belt enforcement is up 64.7 percent — 799 in 2012 versus 485 in the same time frame last year. In Greene County, seat belt tickets are up nearly 70 percent. In Warren County, those numbers are up 44 percent. And in Miami County, troopers have enforced seat belt infractions 511 times, up from 267 in that period last year — a 91.4 percent increase. 

“We’ve had four fatal (crashes) with four dead,” said Sgt. Vee Witcher of the Piqua Post. “None were wearing seat belts, so that’s why we’re cracking belts.” 

Gillan said an unbuckled seat belt should be a primary reason to pull someone over. 

“We know that wearing a seat belt is one of the most important things you can do to protect you and your family,” Gillan said. “So why are we tying the hands of law enforcement so that they can only enforce the law if they see someone doing something else that’s equally or more dangerous?” 

All enforcement increasing

 

Statewide, troopers made more than 24,000 additional enforcement stops from January through April compared to this time in 2011 — an increase of 16.3 percent. 

Drug violations were up 32.8 percent, felony arrests up 18.1 percent, misdemeanor summons up 36.1 percent and commercial vehicle enforcement up 19.6 percent, among others. 

“The new leadership in the Highway Patrol is a big part of this. We’re refocusing our efforts on the things that the public find most important,” Hamilton said of Col. John Born, who took over in 2011 as the OHP’s superintendent. 

The “Trooper Shield” initiative was introduced in 2011 and continues to pick up steam in 2012. Officials say Born wants criminal patrol to be as important as traffic enforcement. 

“If you drink and drive, we’re looking for you. If you’re hauling drugs on our roads, we’re looking for you,” said Sgt. Anthony Lauer of the post that serves Greene County. “And bottom line is a seat belt is going to save your life. That’s where you’re seeing an increase in those numbers.” 

County numbers

 

In Greene County, that mentality has translated into much higher numbers of OVI violations (29 percent) and drug violations (30 from 11). In Warren County, OVIs are up 26 percent and commercial vehicle violations (tied mainly to construction zones on I-71 and I-75) are up 55 percent. 

In Miami County, overall enforcement stops are up 64.7 percent — from 1,262 in the same time frame last year to 2,112 this year. In Montgomery County, some felony and drug violations are down, but overall enforcement stops are up 36 percent. 

“Trooper Shield is kind of a new phrase that the patrol has been using, adopted by our Col. John Born,” Kramer said. “The premise is getting in the minds of the troopers, ‘What will you do today to contribute to a safer Ohio?’ ” 

Kramer said the OHP will keep finding violations, especially during the Prom, Memorial Day and graduation season. But troopers can’t put on seat belts, which he said is the best defense in a crash: “It’s all in their hands when they make that decision.”

For more information, contact Vincent Rush of Lynx Telematics at (866) 314-0461 

 For more information on how Lynx Telematics, an OEM located in Cincinnati, Ohio can help your fleet become more operationally efficient or custom design a solution to meet your fleet management needs, contact Vincent Rush at (866) 314-0461

LynxTelematics is an OEM that controls design, engineering, firmware, software development, IT support and manufacturing processes of our product, allowing us to produce the highest quality product in our industry, while offering our customers competitive pricing.

As your partner, we provide ongoing training and support to insure that the product is properly sold to the end user, maximizing the re-sellers profitability.

As one of the pioneers in telematics technologies, Lynx Telematics provides our clients with powerful end-to-end vehicle telematics tools. Our technology offers a real solution that delivers safety, saves money and provides an unprecedented level of peace of mind to our customers. 

Our product, LynxSafe, is the newest and most advanced Text and Web Browsing Disabling technology, in-vehicle communication system currently on the market. It combines GPS/satellite and GSM cellular technology to provide users and family members with immediate access to real-time information including seat belt usage, speed, accident notification, and real time ECM diagnostics  delivered directly via any internet enabled device including Android and Blackberry smart phones.

 

Newest prom danger: Texts

Distracted driving latest focus of annual mock crash

 MARION - Mock crashes in the spring are as much the norm for high schools as their proms and graduations.

Once a message not to drink and drive, they are now used as a tool against distracted driving as well.
The Marion post of the Ohio Highway Patrol staged a mock crash attended by students from Elgin, Marion Catholic, Pleasant and Ridgedale high schools Monday morning at the Marion County Fairgrounds. Firefighters from the Marion City and Marion Township fire departments worked together to free "victims" from vehicles using the Jaws of Life and saws.

Students portrayed the victims. Ridgedale's Samantha Burns was the fatality, on the ground covered in a white sheet. Highway patrol trooper Ben Addy gave the safe-driving speech, walking through the grandstand and talking to students with the crash scene in the background.

He shared some stories, including one in which two family members died in a crash caused by a distracted driver trying to pass a semitrailer.

"That vehicle is a missile," Addy said, recalling something a past post commander used to say about the dangers of unsafe driving. "We are hoping you guys will listen to us."

Distracted driving has become part of the talk of law enforcement as they educate teens about the consequences of unsafe driving.

Lt. Lance Shearer, commander of the patrol's Marion post, said dangers include texting and driving as well as changing the radio or eating while driving. He said distracted driving is a huge issue of concern when it comes to causes of avoidable crashes.

"You know kids are doing it," he said.

A Pew Internet and American Life survey completed in 2009 found that 34 percent of 16- and 17-year-old teen texter respondents said they had texted while driving. The report estimated that about 26 percent of all American teens ages 16 to 17 text while driving.

The National Highway Traffic Safety Administration reported that 16 percent of fatal crashes and 20 percent of injury crashes in 2009 involved reports of distracted driving. Sixteen percent of all drivers younger than 20 involved in fatal crashes were reportedly distracted while driving.

As far as dangers, a Virginia Tech Transportation Institute study stated that sending or receiving a text takes the driver's eyes from the road for an average of 4.6 seconds. At 55 mph, that would be the same as driving the length of a football field blind.

The issue has been discussed in the Legislature. The Ohio Senate recently passed a bill that would ban texting while driving. The bill, which must be approved by the Ohio House, would make texting and driving a primary offense for teens younger than 18.

That means law enforcement could pull teens over for the offense without spotting any other offenses and teens could face a 60-day license suspension for a first offense.

Ridgedale student Hannah Loper said she volunteered to portray a crash victim because it sounded like fun and teaches teens not to text and drive. She and other students agreed that it is a problem.
While talking about distracted driving, troopers also lectured against the dangers of drinking and driving. Addy told students not to drink considering they are underage, but added that if they do, to only do so in moderation and not drive for any reason.

He talked about the scenes that first responders come across as he referred to an area of broken glass on a van's windshield. That area, he said, is commonly caused by the head of a driver not wearing a seat belt.

"A lot of times you will find hair, skin, blood right in the windshield," he said.

Student volunteers described their experience as interesting but a bit uncomfortable.

"I think the Jaws of Life is pretty scary," said Loper, who portrayed the driver of a car involved in the crash. She sat with a sheet over her as firefighters cut off and removed the car's top.

"It was a new experience but scary at the same time," she said. "The saw is by your head."

Burns spent the entire time lying on the ground as if she was dead. A firefighter laid a sheet over her and continued to the car as he and others worked to free victims.

Addy explained that first responders focus on the living because that's who they can still help.
"I thought it was pretty scary," Burns said. "I was supposed to be dead. They said, 'She's dead. Don't worry about her.'"

Reporter Kurt Moore: 740-375-5151, kdmoore@ marionstar.com or on Twitter @StarKurtMoore

For information on the LynxSafe Teen Driving Monitor, that disables texting and driving, along with web browsing, contact Development Manager Vincent Rush at Lynx Telematics in Cincinnati, Ohio at 513-965-6318 or 513-702-0495. Vincent Rush can also be reached by email at vrush@lynxtelematics.com or visit http://lynxtelematics.com for information on Lynx Telematics.

Ohio Senate votes to outlaw texting while driving

Photo by LynxSafe and the new LynxSafe Anti-Texting / Teen Safe Driving Monitor

COLUMBUS — Even as some members conceded that they are as guilty as anyone, the Ohio Senate voted 25-8 across party lines today to make Ohio the 38th state to criminalize texting while driving.

They also went a step further to prohibit teen drivers from operating or programming a cell phone, portable computer, directional device, or any other electronic device while driving.

An adult who texts and drives would be guilty of a minor misdemeanor punishable by a fine of $150. Like Ohio’s mandatory seat belt law, it would be a secondary offense requiring police to have another reason for pulling the driver over.

But for the teen under the age of 18 who violates the broader ban on electronic devices, it would be a primary offense, meaning police would need no other reason for the traffic stop. The first offense could lead to a $150 fine and a 60-day license suspension. The second would carry a $300 fine and one-year suspension.

Sen. John Eklund (R., Chardon) pointed to a previously enacted law that made it illegal for a teen driver to have more than one non-family passenger in his vehicle as evidence that curbing driver distractions saves lives.

“Over the course of three years, a 26 percent reduction in the number of fatalities of that group of drivers in the state of Ohio… by removing a distraction,’’ he said. “There is nobody in this room who would suggest that the use of these gizmos is not a distraction…

“When this bill passes, don’t violate the law,’’ Mr. Eklund said. “It’s really very simple, and you’re not then going to be called a hypocrite.’’

The bill, sponsored by Rep. Rex Damschroder (R., Fremont) and Nancy Garland (D., New Albany), overwhelmingly passed the Ohio House last year but without the more restrictive provisions applying to teen drivers. Mr. Damschroder introduced it after a newly licensed 16-year-old girl in his district, while texting, crossed the center line and killed a motorcyclist headed in the opposite direction.

Some opponents of the bill, however, argued that it infringes on individual rights while including so many exceptions as to render it unenforceable.

“There are 10 exemptions for adult drivers to utilize electronic devices behind the wheel…,’’ said Sen. Capri Cafaro (D., Hubbard). “This definition (of “texting’’) basically says that… I can use my phone to read the newspaper, play games, and write myself a note because it’s not an e-mail, a text message, or instant message. I certainly don’t feel that this bill fulfills the objective that it sets out to achieve.’’

Among members representing northwest Ohio, the bill drew support from Sens. Mark Wagoner (R., Ottawa Hills), Cliff Hite (R., Findlay), and David Burke (R., Marysville). The sole northwest vote in opposition was cast by Sen. Edna Brown (D., Toledo), who offered an unsuccessful amendment to make it more restrictive.

“Instead of Ohio passing a controversial law with exemptions and possible loopholes, why don’t we pass meaningful legislation that requires all communication while driving in Ohio to be totally hands free,’’ she said.

The bill now returns to the House for approval of the Senate changes. It would not override more stringent ordinances enacted in local communities. The texting ban in Toledo, for instance, carries a fine of $1,000 plus six months in jail.

Sen. Bill Seitz (R., Cincinnati) argued that having state and local laws could lead to a driver being punished twice for the same activity.

For further information on the LynxSafe Ant-Text / Teen Safe Driving Monitor, Contact Vincent Rush at Lynx Telematics in Milford, Ohio at (513) 965-6318 or vrush@lynxtelematics.com

Telematics Technology Proves Driver Safety and Fleet Savings Go Hand-in-Hand

Fleet Owners Cut Costs With Driving Habits

SALT LAKE CITY, UT, Apr 12, 2012 (WIRED MARKET ONLINE) – Lynx Telematics Technology Solutions Inc., a global telematics company centered on fleet management and driver safety solutions, is proving a direct correlation exists between driver habits and fleet operational cost savings. With Lynx Telematics Go5 -- the most comprehensive solution designed to improve driver safety, fleet management and compliance -- fleet owners are able to increase fuel efficiency on average by 20 percent, reduce maintenance costs by 20 percent and avoid costly penalties and fines.

"Fleet owners from all over the globe have turned to Lynx for a fleet management solution that will not only save lives, but improve their bottom line as well," said David Holland, Lynx VP. "With data collected from tens-of-thousands of vehicles using our technology for the past several years, we have proven to dramatically improve driving behavior, leading to fewer crashes, better fuel economy and safer, more productive drivers."

AAA reports that accident costs amount to over 164 billion dollars per year. To avoid incurring collision costs, Lynx Telematics offers the only solution that provides real-time in-cab verbal alerts to drivers when speeding, idling, driving aggressively or not wearing a seat belt. By mentoring drivers into developing safer driving habits, fleet managers can expect a reduction in speeding and aggressive driving of more than 86 percent, leading to greater fuel efficiency and significantly lower rate of crashes.

"While working for 34 years at one of the largest mining companies in the world, we achieved a 77 percent reduction in driver incidents in one year after installing telematic technology across our fleets," said Bruce Huber, newly named Vice President of Safety. "By improving driver behavior, we were not only able to protect the lives of our drivers, but save money on fuel and maintenance costs as well."

With Lynx Telematics, fleet managers can also monitor fleet vehicles and identify areas to reduce operational costs. Through satellite and cellular based tracking, managers can monitor trips taken and vehicle MPG, ultimately eliminating unauthorized trips and improving company productivity.

About Lynx Telematics is a Cincinnati based company centered on telematics, fleet solutions and driving safety. Its breakthrough driving safety solutions are designed to safeguard lives, save money and protect the environment. LynxSafe technology dramatically improves driver behavior and has been documented to reduce accidents by more than 80 percent. For more information, please visit http://www.lynxtelematics.com

For further information, contact Vincent Rush at (513) 965-6318 or at vrush@lynxtelematics.com