Here is an interesting article from teh December edition of Transportation Topics that discusses the myth that electronic recording devices and crash avoidance devices do not reduce insurance costs.

How these devices help with regards to premiums is that they can transfer the liability of accidents from that of the operator to that of another motorist. I have two clients, both in Colorado, that had it not been for a crash camera installed in their vehicles, they would have been held liable for an accident. The crash cams showed the true cause of the crashes and therefore kept our insureds carriers from paying claims. This is an example of how they keep insurance costs down--after the fact.

Although it is a trucking publication it is relevant because the Public Auto insurance industry is within the same pool of insurance with regards to underwriting and rating--what happens in their industry affects the public auto market. Some may recall Lincoln General as an insurance company that wrote Public Auto policies until a few years ago and subsequently is failing and going through voluntary,
solvent runoff--its trucking losses is what brought it down for the most part.