Create a combination of technologies (GPS, radar or sonar, automotive system monitoring, video cameras, weather devices) to monitor everything your car does and its environment. Monitor location, speed, brake application, use of turn signals, seatbelts, radio, road conditions, etc. Use this information to apportion liability in the event of an accident or as evidence in court for defense or prosecution.

Insurance companies would offer lower premiums to drivers who choose to have these technologies (collectively called "black box") installed. They would be paid for by insurance companies out of greater profits or drivers out of lower premiums. Safe drivers would choose to install the black box to be rewarded for their safe driving. Drivers with black boxes would presumably drive more safely.

Eventually, insurance companies might only insure drivers with black boxes. Then every driver would have to have one and every driver would drive more safely, saving billions in property damage, litigation and medical expenses, not to mention addressing a leading cause of death among healthy young people.

Economic keywords: moral hazard, asymmetric information

Cost-Benefit Analysis: Is the amortized cost of R&D plus installation less than the amortized savings in property damage, litigation and medical expenses?

Privacy Concerns: If the black box is "voluntary" (but no insurance company will insure you if you don't have one and no state will allow you to drive without insurance), is there a legal basis for a prohibition of black boxes? What if the video camera monitors other vehicles (to help apportion liability in case of accident)?

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