Telematics in the Insurance Industry: A Growing Trend

Kevin Jones
Technical Analyst

Auto insurance rates are calculated using information that helps determine a driver's risk. These risk factors have been based on--but not limited to--age, driving records, past claims, type of vehicle, and so on. However, it is anticipated that this method of determining risk is going to decrease as insurance companies invest in telematics systems, which will provide information on how an individual car is performing on the roadway. In ABI Research's press release on February 10, 2012, ABI Research estimated that global telematics use will rise from 1.85 million in 2010 to 89 million by 2017.

ABI Research reports that these systems have been in existence since 2002, but recently there has been renewed interest in them. The current telematics systems, or usage-based insurance (UBI) systems, are installed using the vehicle's on-board diagnostic (OBD) port. However, ABI predicts that installation of these systems will increase by way of factory or aftermarket wireless connections to the OBD bus via Bluetooth.

Bendix Identifies Possible Defect in Certain Bendix ATR-6 Valves

Kelly Messerschmidt
Technical Communications Manager

According to a statement released by Bendix Commercial Vehicle Systems on February 02, 2012, Bendix notified NHTSA of a potential defect in the Bendix ATR-6 valves that were manufactured between December 02, 2010 and January 18, 2012. Bendix states that the potential defect could occur when vehicles are being operated in extremely cold conditions (at or below 0 degrees Fahrenheit). According to Bendix, approximately 50,000 to 60,000 vehicles are affected.

Bendix is offering a temporary remedy kit free of charge, which is for use until they make the permanent remedy kit available. Visit the “Product Action Center” page on the Bendix website for information and updates about this issue. Questions or comments about this matter can be directed to Bendix representatives at the Bendix ATR-6 Action Line, at 1.800.478.1793, seven days a week, between the hours of 7am-8pm Eastern Time.

Due to the potentially defective valve, Paccar Inc. has recalled those Kenworth and Peterbilt trucks built between January 2011 and January 18, 2012. To learn more about the Paccar recall, read this news article at Truckinginfo. 

FMCSA Issues Notice on New Medical Certification Requirements

Benjamin Smith
Principal Technical Analyst

On January 19, the Federal Motor Carrier Safety Administration (FMCSA) issued a notice to drivers holding a commercial drivers license (CDL) regarding new requirements for medical certification.

Starting on 30 January 2012, the FMCSA will require that all drivers who hold a CDL present their local state driver licensing agency with information regarding the type or types of commercial driving that they are involved with.

The commerce categories are:

• interstate excepted,
• interstate non-excepted,
• intrastate excepted,
• intrastate non-excepted.

Drivers who are determined by state licensing agencies to operate in one of the non-excepted categories will be required to submit a medical examiner’s certificate to their state driver licensing agency. Once this certificate is submitted, it will become part of the driver’s CDL system record. Drivers who fall into one of the “excepted” categories will not be required to provide a medical examiner’s certificate.

Drivers who fall into either non-excepted categories who fail to provide a current medical examiner’s certificate will have a status of “not certified.” The consequences of having a “not certified” status will depend on the specific regulations of the state that issued the CDL; however, in many cases, this status will result in the loss of the commercial license. For example, a driver who falls into a non-excepted category and fails to submit a current medical examiner’s certificate in Alabama will have his or her CDL cancelled. View state-by-state instructions and information.

View the FMCSA notice.

NHTSA Evolves Alongside Automobile Technology

Kevin Jones
Technical Analyst

Today’s vehicles are being equipped with Global Positioning Systems (GPS), lane-departure warning systems, blind spot detection, voice/data communications, airbags, entertainment systems, electronic data recorders (EDRs), and an array of other devices for passengers’ entertainment, information, navigation, convenience, comfort, and vehicle emission controls.

Obviously we are way past those days when people could understand vehicles by simply opening the doors, popping the hood, and kicking the tires. Because automobiles have evolved quickly and in many ways, research organizations and institutions are driven to stay current with how these different electronics affect vehicle and roadway safety.

The Transportation Research Board (TRB) recently issued a report in response to the National Highway Traffic Safety Administration’s (NHTSA) requesting that the National Academy of Sciences’ (NAS) National Research Council (NRC) study how NHTSA’s various departments are ensuring that vehicle electronics are benefiting – and not compromising – the safety of vehicles.

As part of their study, the NSC appointed a 16-member panel that was asked to review NHTSA’s response to faulty electronics claims and unintentional acceleration. The findings are contained in TRB Special Report 308: The Safety Challenge and Promise of Automotive Electronics: Insights from Unintended Acceleration. Visit The National Academies Press website to download the report.

View NHSTA’s statement in response to the report.

NHTSA Administrator Strickland Discusses Rewarding Extra Credit for Vehicle Safety Technology

Kelly Messerschmidt
Technical Communications Manager

Last week in Detroit, Michigan, National Highway Traffic Safety Administration (NHTSA) Administrator David Strickland spoke to the Society of Automotive Analysts about NHTSA’s considering changes to their 5-star crash rating system, which would give “extra credit” to vehicles that include safety system technologies. Read more about what Administrator Strickland said about this in a news piece by David E. Zoia, of WardsAuto (01/09/12).

Strickland did not identify specifically which vehicle safety technologies would increase vehicles’ add-on safety credits; however, he said that NHTSA is currently evaluating technologies worthy of highlighting, and that decisions may be made soon.

Vehicle-to-Vehicle (V2V) communication is a particularly interesting example of an emerging vehicle safety technology. According to the US DOT Research and Innovative Technology Administration (RITA), V2V is the “dynamic wireless exchange of data between nearby vehicles that offers the opportunity for significant safety improvements." Read RITA's V2V "Research Overview."

V2V uses anonymous vehicle-based data exchange to allow vehicles to “talk” in real time about subjects that include (but are not limited to) speed, location, and position - in order to calculate risk, take proactive steps to reduce risk and mitigate vehicle crashes, provide warnings or advisories to drivers, and more.

Learn more about the US DOT's Intelligent Transportation Systems (ITS) Strategic Research Plan 2010-2014.

View RITA's overview of applications addressed by the Federal ITS program.