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Car insurance reductions 'could offset wireless technology costs'

22/05/08

The cost of wireless connectivity in cars could be offset by cheap car insurance premiums, according to an industry expert.

Andrew Ferguson, editor of thinkbroadband, said: "The early roll-outs of collision avoidance in cars and other uses are going to be expensive initially. Reductions in car insurance costs for safety systems may offset the cost."

He added that a more intelligent Sat Nav system could "pay for itself" in terms of the fuel saved.

Earlier this month, a report by Ofcom predicted that wireless technology will probably be used to prevent collisions within the next ten years.

The report said that wireless communication is now "integral to our lives" and detailed how the technology could be used in the transport sector.

It said that wireless technology has the potential to prevent car crashes as it allows vehicles to communicate with each other and could even include automatic braking in the future

Wireless in-car technology could automatically call the emergency services after a collision and alert them of an accident as well as send images of the accident to hospitals to help with diagnosis and treatment.

Ofcom's report said that many car manufacturers are developing systems that allow vehicles to communicate wirelessly and the technology could be fitted to cars by 2015.

Road-to-vehicle and car-to-car communications could also help drivers avoid traffic jams by alerting them to road congestion.

A detection system for smog, pollution and pollen is also being developed and is being pioneered in Japan, the USA and some parts of Europe.

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