Car rental agencies have an understandable fear when placing a set of keys in the hands of a renter. The unpredictability of drivers’ skills, combined with the knowledge that the drivers will not have to get their rentals’ brakes or transmissions repaired in the future, creates a maintenance and insurance nightmare for agencies. Before long, however, folks might find that they have a new set of incentives to treat rental cars with a little more kindness.
GPS devices are set to become a tool used by insurance companies to keep track of the driving habits of renters. They can record and send back a wide range of informational tidbits—simple things like real-time location and routes traveled, but also more complex data like average speeds, braking behavior, and other activity that could put excessive wear and tear on vehicles. Insurance companies would love the opportunity to reward good drivers by lowering their rates and, of course, put the bulk of insurance costs on the shoulders of more risky drivers. These GPS devices would allow them to do just that.
Insurance companies are starting slowly, though. They recognize that car renters could easily be scared off if they feel like “Big Brother” is suddenly watching them at all times. Right now, most of the GPS tracking is on a voluntary basis, so good drivers looking for discounts are the primary participants. The insurance companies are also mostly limiting their rate changes to discounts, not implementing penalties quite yet.
Financial concerns are not the only ones driving the monitoring by GPS devices. In the event of an accident, a GPS unit could alert the rental agency and emergency response personnel, leading to quicker response times and saved lives. If a rental car were stolen—a common problem, especially with high-value exotic cars—the company could easily help law enforcement locate the vehicle with the help of the GPS signal.
Are car renters too uncomfortable with the idea of agencies watching their every move for GPS tracking to catch on? Perhaps input from volunteers will give insurance and rental agencies an idea of its possible reception on a large scale. Until then, those who are accustomed to taking a few extra liberties with their rentals may want to practice some milder driving habits—just in case someone is watching them on a monitor somewhere.
