In an experiment funded by the NHTSA, researchers discovered that drivers will slow down if they have an incentive to do so. The NHTSA placed small GPS devices in the cars of participating drivers and promised them a $25 prize at the end of each week they did not speed. But every time the test subjects went five miles per hour over the posted speed limit, they lose three cents. Each time they went nine or more miles per hour over the posted speed limit, they lost nine cents. Overall, the NHTSA found that this approach led to drivers reducing their speed.
Given the success of the NHTSA project, consumers may see an expansion of insurance programs that offer drivers a reduction in premiums for safe driving.
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Source: NPR.org, “GPS Study Shows Drivers Will Slow Down, At A Cost,” Shankar Vedantam.