Em‘ 1°“
`
`i||||| |||||||| ||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| |||||| ||| ||||| ||||
`
`UStltl6tl64970A
`
`United States Patent
`
`[19|
`
`[11] Patent Number:
`
`6,064,970
`
`McMillan et al.
`
`[45] Date of Patent:
`
`*May 16, 2000
`
`[54] NIOTOR VEHICLE MONITORING SYSTENI
`FOR DETERMINING A COST OF
`
`4,843,578
`4,853,720
`
`6/1989 Wade .................................... .. 364/565
`8/1989 Onari et al.
`...................... .. 364/431.07
`
`INSURANCE
`Inventors: Robert John McMillan, Tampa, Fla.;
`Alexander Dean Craig, Moreland
`H1115, Ohio; John Patrick Heinen,
`TamPa> F14
`
`(List continued on next page.)
`FOREIGN PATENT DOCUMENTS
`V
`“'1P0~
`8/1989
`OTHER PUBLICATIONS
`
`9002388
`
`“The Safest Cars of 91”, Baig, Edward U.S. News & World
`Report V109, n22, p.71;Dec. 3, 1990.
`“Vendor"s Spice Up Services”, Robert Deierlein, Beverage-
`World, V109, H1467, P82; Jun 1990
`Rosenberg, Martin; Alexander, Shephen A. , Rate Classifi-
`cation Reforin in New Jersey. Best’s Review (Prop/Casu-
`alty) vo. 92. No. 12, pp. 30-32, Apr. 1992.
`Kaneko, Tetsuya; Jovanis, Paul P. Multiday driving patterns
`and motor carrier accident risk. A disaggregate analysis.
`Accident Analysis and Prevention, vol. 24, No. 5, pp.
`437-456, Jan. 1, 1992.
`_
`.
`.
`Primary Exammer—EdWard R. Cosiniano
`‘,3/fi°I:{::y’Lfi,e”‘ 0’ F'””_Fay= Sharpe’ Fag” Mmmch &
`’
`
`[57]
`
`ABSTRACT
`
`A method and system of determining a cost of automobile
`insurance based upon monitoring, recording and communi-
`cating da.ta.representative.of operator and vehicle driving
`characteristics. The cost 1S adjustable retrospectively and
`can be prospectively set by relating the driving characteris-
`“C5 to pr°d°t°“m“‘?d 5.'°‘f°ty S““‘d.‘”dS' Th° mmhod Com"
`prises steps of monitoring a_ plurality of raw data elements
`representative ol an operating slate of the vehicle or an
`action of the operator. Selected ones of the raw data ele-
`ments are recorded when the ones are determined to have an
`identified relationship to safety standards. The selected ones
`are consolidated for processing against an insurer profile and
`for identifying a surcharge or discount to be applied to a base
`cost of automobile insurance. A final cost is produced from
`,
`_
`_
`_ _,
`_
`_
`_
`_
`_
`the base costs and the surcharges or (IL’5L0lJIlIb.
`
`15 Claims, 6 Drawing Sheets
`
`ASSISHCC3 P1‘0g1‘e55iVe Casualty Insurance
`Company. Maylield Village, Ohio
`,
`,
`,
`,
`,
`This patent is S1.1IZ)_]CCl to a terminal dis-
`Claim“
`
`,
`[* ] Notice:
`
`[31]
`[22 I
`
`A1114 N0-I 09/135»034
`Filed:
`Aug 17’ 1998
`
`Reklted U_S_ Application Data
`
`[63] Continuation of application No. 08/592,958, Jan. 29, 1996,
`Pat, No, 5,797,134,
`Int. Cl.7 ...................................................... G06F 17/60
`[51]
`[52] U.S. Cl.
`....................... .. 705/4, 340/439; 340/870.01;
`3605; 702/1; 705/400
`340/439, 870.01;
`[58] Field of Search .................. ..
`360/5; 70111.7; 702/1; 705/4, 400
`
`[56]
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`3/1970 Ekniaii
`1/1978 Juhflsz ......... N
`11/1980 Wallace et al.
`3/1931 Juhflsz 61 1,1.
`8/1985 |)cckc1- ct a|_
`8/1986 Tsikos
`1/ 1987 Midd|Cl71‘00k Ct 24-
`5/1987 I365‘
`5/I988 l°'"‘°S Ct a"
`8/1988 Eto etal.
`2/I989 (flere et al.
`5/1989 Karmel et al.
`6/1989 Michetti
`
`
`
`340/439
`36$/5
`-M2/188
`701,35
`351)/5
`364/424
`-- 340/495
`377/15
`,7”'2*'i'4,l
`.. 180/143
`36(]/5 X
`. 72/866 X
`358/108
`
`3_5o4_337
`057,061
`4_234_926
`4,253,421
`4,533,952
`4,608,638
`4,633,295
`4:55?-€35
`4’_7‘Ij"'-€64
`4,763,/45
`4,807,179
`4,829,434
`4,843,463
`
`[75]
`
`I73]
`
`?/204
`ACEJJIRE
`'
`li
`SENSOR
`‘vat-1
`5
`.
`‘RE DFLL» “IT,
`R
`OR
`LE
`/206
`E
`!_
`1.
`"
`AC um RIB
`PON
`T R
`I
`E
`J
`“LE
`
`rmevssn EVENT
`‘REEF-‘CNSE FILE
`
`ti
`.
`
`202
`
`2203
`
`R
`
`CON SULI rurr F
`I-'lLhS
`ACQUIRED
`
`PROCESS FILE
`AGAINST INSURED
`FRUFILF.
`
`,,.2M
`
`PROCESS
`LE
`AGAINST SU
`HARGE
`ALGORITHM FILE
`
`
`
`PRODUCE FERIO
`BILLS TO BE MAIL
`
`TO
`
`Liberty Mutual
`
`Exhibit 1001
`
`Page 000001
`
`ACCOUNT
`
` * msunzn
`
`Page 000001
`
`

`

`6,064,970
`Page 2
`
`U.S. PATENT DOCUMENTS
`'
`
`.-
`;.-
`g
`.
`§gfi*_,:§:'$
`1/'g§g,=gfi Egg?
`364/424.04
`49924943
`2/1991 Mccracken
`sheflter “mm”.mlmtnmmutnnn
`5/1992 Lucas et a1.
`2/1993 Onari et a1.
`6/1993 Mansell etal.
`6/1994 Desai et al.
`
`5/_111>_289
`5/1395521
`5,223,844
`5,319,374
`
`
`
`358,108
`364/431,[)4
`342,357
`342/387
`
`5,365,451
`5,430,432
`5,499,182
`5,500,806
`
`.......................... .. 364/449
`11/1994 Wang et al.
`......................... .. 340/438
`7/1995 Camhi et al.
`3/1996 Ousborne .................................. 701/35
`3/1996 BE.:ll1n et al.
`....................... 364/528.33
`NICO1 C1; 31.
`........................... ..
`8/1996 Aleslu ................................... .. 342/457
`5,550,551
`6/1997 Coiner et al.
`.................... .. 364/424.04
`5,638,273
`705/417
`5,694,322 12/1997 Westerlage et al.
`5,797,134
`8/1998 McMillan et al.
`.................... .. 705/400
`
`Page 000002
`
`Page 000002
`
`

`

`U.S. Patent
`
`May 16, 2000
`
`Sheet 1 of 0
`
`6,064,970
`
`I00
`
`I04
`
`
`
`REVERIFY
`IN TWO
`
`MINUTES
`
`VEH|c1_E
`OPERATING
`7
`
`
`
`RECORD SENSOR
`INFORMATION
`
`
`I08
`
`N0
`
`
`
`
`
`
`
`RECORD TRIGGER
`
`INFORMATION
`
`IMMEDIATE
`UPLOAD
`?
`
`NOTIFY
`CENTRAL CONTROL
`
`
`
`
`
`RECORD TRIGGER
`
`EVENT RESPONSE
`INFORMATION
`
`F|G.I
`
`Page 000003
`
`
`
`
`
`TAKE APPROPRIATE
`ACTION
`
`CENTRAL CONTROL
`
`Page 000003
`
`

`

`U.S. Patent
`
`May 16, 2000
`
`Sheet 2 of 0
`
`6,064,970
`
`F|G.2 @
`
`204
`
`202
`
`RECORD FILE
`
`ACQUIRE
`VEHICLE
`
`
`
`
`VEHICLE SENSOR
`RECORD FILE
`
`206
`
`208
`
`
`
`
`TRIGGER EVENT
`
`
`
`RESPONSE FILE
`ACQUIRED
`
`ACQUIRE TRIGGER
`EVENT RESPONSE
`FILE
`
`CONSOLIDATE
`
`FILES
`
`2l2
`
`PROCESS FILE
`
`AGAINST INSURED
`PROFILE
`
`PROCESS FILE
`
`AGAINST SURCHARGE
`
`ALGORITHM FILE
`
`PRODUCE PERIODIC
`
`BILLS TO BE MAILED TO
`
`INSURED
`
`Page 000004
`
`Page 000004
`
`

`

`
`
`U.S. PatentU.S. Patent
`
`
`
`May 16, 2000May 16, 2000
`
`
`
`Sheet 3 of 0Sheet 3 of 0
`
`
`
`6,064,9706,064,970
`
`
`
`Page 000005Page 000005
`
`Page 000005
`
`

`

`U.S. Patent
`
`May 16, 2000
`
`Sheet 4 of 0
`
`6,064,970
`
`4|6
`
`OPERATIONS
`CONTROL
`
`CENTER
`
`COMMUNICATIONS LINK
`
`Ieg CELLULAR
`
`300
`
`402
`
`404
`
`
`
`
`
`ON‘ BOARD
`DATA
`
`STORAGE
`
`
`
`
`ON ' BOARD COMPUTER
`AND RECORDING SYSTEM
`
`I/O
`
`SUBSYSTEM
`
`DRIVER
`INPUT
`
`CONSOLE
`
`TELEPHONE)
`
`
` 4|4
`
`
`
`
`
`
` ':)":,*‘t'j:‘§"!\'[r'l"'f"(5; ADDITIONAL
`
`SENSORS
`
`KERNEL
`
`CPU AND
`
`MEMORY
`
`408
`I 406
`SENSORS 422
`
`VEWCLE
`DATABUS AND
`
`NAVIGATION
`SUBSYS1-EM
`
`4|2
`
`420
`
`F|G.4
`
`Page 000006
`
`Page 000006
`
`

`

`U.S. Patent
`
`May 16, 2000
`
`Sheet 5 of 0
`
`6,064,970
`
`F|G.5
`
`502
`
`
`
`
`
`COLLECT
`RAW DATA
`E LEM E NTS
`
`
`
`
`
`GENERATE
`CALCULATED
`
`
`
`DATA ELEMENTS
`
`
`COLLECT
`DATABASE
`
`INFORMATION
`
`ELEMENTS
`
`
`
`
`
`GENERATE
`DERIVED DATA
`ELE MENTS
`
`
`
`
`
`STORE DATA
`SAMPLE
`
` INCIDENT
`CONDITION
`
`
`
`?
`
`SNAPSHOT
`INCHDENT
`CONDITION
`
`Page 000007
`
`Page 000007
`
`

`

`U.S. Patent
`
`May 16, 2000
`
`Sheet 6 of 0
`
`6,064,970
`
`m:.<mm._n_s_<m
`
`mu<.._mmhz_
`
`
`
`mm<m<Eozo_._.S.._mou_z_
`
`ozqzmo20u
`
`
`
`mgmobmmmknmsoo-
`
`
`
`mzo_mo_n_.._<E.
`
`
`
`m_._z_._ommam
`
`mmqz
`
`
`
`
`
`mzorzozoo>§..._w__._u
`
`
`
`
`
`Em»mm:._.D...:u
`
`
`
`m._.<mm.Es_<m
`
`mo<u_mm._.z_
`
`
`
`wuumzomm._u:m_>
`
`E3.:0...
`
`mokomzzou93:.mqm-
`
`
`
`S3._<o_E.um._u-
`
`<._.<omzazmu
`
`_<._.<oBom-
`
`mtqmu._n_z<m
`
`mu<0_mm.:,__
`
`
`
`mmomaommw:._.o
`
`mm_m<>-
`
`
`
`m.Eon_o:m:o_Eu>-
`
`
`
`
`
`..o._....._.mm_1mn~-mm.9:
`
`
`
`_2mFm>m>._._m:ommu
`
`<._.<n_«:2u
`
`
`
`(.53m..._o..
`
`
`
`
`
`.m.:fi_.5>m._<zo_._.Ea<u
`
`
`
`
`
`>..O._.mmmmoomazo_:mSoo<3.3m._u_zm>
`
`
`
`mmmoommmoz<m:wz_m._o_:m>mO._.O2
`
`
`
`
`
`mar.
`
`Page 000008
`
`Page 000008
`
`

`

`6,064,970
`
`1
`MOTOR VEHICLE MONITORING SYSTEM
`FOR DETERMINING A COST OF
`INSURANCE
`
`This application is a continuation application of U.S. Ser.
`No. 08/592,958, filed Jan. 29, 1996, now U.S. Pat. No.
`5,797,134.
`
`BACKGROUND OF THE INVENTION
`
`5
`
`10
`
`invention relates to data acquisition and
`The present
`processing systems, and particularly to a system for moni-
`toring motor vehicle operational characteristics and driver
`beh. vior to obtain increased amounts of data relating to the
`safety of use for purposes of providing a more accurate
`determination of a cost of insurance for the vehicle.
`
`(ionventional methods for determining, costs of motor
`vehicle insurance involve gathering relevant historical data
`from a personal interview with the applicant for the insur-
`ance and by referencing the applicant’s public motor vehicle ,
`driving record that is maintained by a governmental agency,
`such as a Bureau of Motor Vehicles. Such data results in a
`
`classification of the applicant to a broad actuarial class for
`which insurance rates are assigned based upon the empirical
`experience of the insurer. Many factors are relevant to such
`classification in a particular actuarial class, such as age, sex,
`marital status, location of residence and driving record.
`The current system of insurance creates groupings of
`vehicles and drivers (actuarial classes) based on the follow-
`ing types of classifications.
`Vehicle:
`
`Age;
`manufacturer, model; and
`value.
`Driver:
`
`Ase;
`sex;
`
`marital status;
`driving record (based on government reports), violations
`(citations);
`at fault accidents; and
`place of residence.
`Coverage:
`Types of losses covered,
`liability,
`uninsured motorist,
`comprehensive, and
`collision;
`liability limits; and
`deductibles.
`
`The classifications, such as age, are further broken into
`actuarial classes, such as 21 to 24,
`to develop a unique
`vehicle insurance cost based on the specific combination of
`actuarial classes for a particular risk. For example,
`the
`following information would produce a unique vehicle
`insurance cost.
`Vehicle:
`
`Age 1993 (three years old)
`manufacturer, model Ford, Explorer XLT
`value 8 18,000.
`Driver:
`
`Age 38 years old
`sex male
`
`marital status single
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`2
`
`driving record (based on government reports)
`violations 1 point (speeding)
`at fault accidents 3 points (one at fault accident)
`place of residence 33619 (zip code)
`Coverage:
`Types of losses covered
`liability yes
`uninsured motorist no
`
`comprehensive yes
`collision yes
`liability limits S100,000./"$300,000./$50,000.
`deductibles $500./S500.
`A change to any of this information would result in a
`different premium being charged, if the change resulted in a
`different actuarial class for that variable. For instance, a
`change in the drivers’ age from 38 to 39 may not result in
`a diJIerent actuarial class, because 38 and 39 year old people
`maybe in the same actuarial class. However, a change in
`driver age from 38 to 45 may result in a different premium
`because of the change in actuarial class.
`Current insurance rating systems also provide discounts
`and surcharges for some types of use of the vehicle, equip-
`ment on the vehicle and type of driver. Common surcharges
`and discounts include:
`
`Surcharges:
`Business use.
`Discounts:
`
`Safety equipment on the vehicle
`airbags, and
`antilock brakes;
`theft control devices
`
`passive systems (e.g. “The Club”), and
`alarm system; and
`driver type
`good student, and
`safe driver (accident free).
`A principal problem with such conventional insurance
`determination systems is that much of the data gathered
`from the applicant in the interview is not. verifiable, and even
`existing public records contain only minimal information,
`much of which has little relevance towards an assessment of
`
`In other
`the likelihood of a claim subsequently occurring.
`words, current rating systems are primarily based on past
`realized losses. None of the data obtained through conven-
`tional systems necessarily reliably predicts the manner or
`safety of future operation of the vehicle. Accordingly, the
`limited amount of accumulated relevant data and its minimal
`
`evidential value towards computation of a fair cost of
`insurance has generated a long-felt need for an improved
`system for more reliably and accurately accumulating data
`having a highly relevant evidential value towards predicting
`the actual manner of a vehicle’s future operation.
`Many types of vehicle operating data recording systems
`have heretofore been suggested for purposes of maintaining
`an accurate record of certain elements of vehicle operation.
`Some are suggested for identifying the cause for an accident,
`others are for more accurately assessing the efficiency of
`operation. Such systems disclose a variety of conventional
`techniques for recording vehicle operation data elements in
`a variety of data recording systems. [n addition, it has also
`been suggested to provide a radio communication link for
`such information via systems such as a cellular telephone to
`provide immediate communication of certain types of data
`elements or to allow a more immediate response in cases
`such as theft, accident, break-down or emergency. It has
`even been suggested to detect and record seatbelt usage to
`
`Page 000009
`
`Page 000009
`
`

`

`6,064,970
`
`4
`of raw data elements representative of an operating state of
`a vehicle or an action of the operator. Selected ones of the
`plurality of raw data elements are recorded when they are
`determined to have an identified relationship to the safety
`standards. The recorded elements are consolidated for pro-
`cessing against an insured profile and for identifying, a
`surcharge or discount
`to be applied to a base cost of
`automobile insurance. The total cost of insurance obtained
`
`5
`
`3
`assist in determination of the vehicle insurance costs (US.
`Pat. No. 4,667,336).
`The various forms and types of vehicle. operating data
`acquisition and recordal systems that have heretofore been
`suggested and employed have met with varying degrees of
`success for their express limited purposes. All possess
`substantial defects such that they have only limited eco-
`nomical and practical value for a system intended to provide
`an enhanced acquisition, recordal and communication sys-
`tem of data which would be both comprehensive and reliable
`in predicting an accurate and adequate. cost of insurance for
`the vehicle. Since the type of operating information acquired
`and recorded in prior art systems was generally never
`intended to be used for determining the cost of vehicle
`insurance,
`the data elements that were monitored and '
`recorded therein were not directly related to predetermined
`safety standards or the determining of an actuarial class for
`the vehicle operator. llor example, recording data character-
`istics relevant to the vehicle’s operating efficiency may be
`completely unrelated to the safety of operation of the '
`vehicle. Further,
`there is the problem of recording and
`subsequently compiling the relevant data [or an accurat.e
`determination of an actuarial profile and an appropriate
`insurance cost therefor.
`
`Current motor vehicle control and operating systems
`comprise electronic systems readily adaptable for modifica-
`tion to obtain the desired types of information relevant to
`determination of the cost of insurance. Vehicle tracking
`systems have been suggested which use communication
`links with satellite navigation systems for providing infor-
`mation describing a vehicle’s location based upon naviga-
`tion signals. When such positioning information is com-
`bined vvith roadmaps in an expert system, vehicle location is
`ascertainable. Mere vehicle location, though, will not pro-
`vide data particularly relevant to safety of operation unless
`the data is combined with other relevant data in an expert
`system which is capable of assessing whether the roads
`being driven are high-risk or low-risk with regard to vehicle
`safety.
`The present invention contemplates a new and improved
`mot.or vehicle monitoring, recording and comrnunication
`system, which primarily overcomes the problem of deter-
`mining cost of vehicle insurance based upon data which
`does not take into consideration how a specific vehicle is
`operated. The subject invention will base. insurance charges
`with regard to current material data representative of actual
`driving characteristics of the vehicle. and driver operation to
`provide a classification rating of the operator and the vehicle
`in an actuarial class which has a vastly reduced rating error
`over conventional insurance cost systems. Additionally, the
`present invention allows for frequent (monthly) adjustment
`to the cost of coverage because of the changes in operator
`behavior and driving patterns. This can result in automobile
`insurance charges that are readily controllable. by individual
`operators. The system is adaptable to current electronic
`operating systems,
`tracking systems and communication
`systems for the improved extraction of selected insurance
`related data.
`
`BRIEF SUMMARY OF THE. INVENTION
`
`In accordance with the present invention, there is dis-
`closed a method of determining a cost of automobile insur-
`ance based upon monitoring, recording and communicating
`data representative of operator and vehicle driving
`characteristics, whereby the cost is adjustable by relating the
`driving characteristics to predetermined safety standards.
`The method is comprised of steps of monitoring a plurality
`
`10
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`from combining the base cost and surcharges or discounts is
`produced as a final cost to the operator.
`In accordance with another aspect of the present
`invention,
`the recording comprises identifying a trigger
`event associated with the raw data elements which has an
`
`identified relationship to the safety standards so that trigger
`information representative of the event is recorded.
`In accordance with a more limited aspect of the present
`invention,
`the method comprises a step of immediately
`communicating to a central control station via an uplink,
`information representative of the trigger event and recording
`response information generated by the control station.
`In accordance with yet another aspect of the present
`invention, the method comprises steps of generating calcu-
`lated data elements and derived data elements from the raw
`
`data elements, and accumulating the calculated and derived
`data elements in a recording device.
`The present invention will use information acquired from
`the vehicle to more accurately assess vehicle usage and
`thereby derive insurance. costs more precisely and fairly.
`Examples of possible. actuarial classes developed from
`vehicle provided data include:
`Driver:
`
`Total driving time in minutes by each driver of the insured
`vehicle;
`
`number of minutes driving in high/low risk locations
`(high/low accident areas);
`number of minutes of driving at high/low risk times (rush
`hour or Sunday afternoon);
`safe driving behavior,
`using seat belts,
`use of turn signals,
`observance of speed limits, and
`observance of tratfic control devices;
`number of sudden braking situations; and
`number of sudden aece-le-ration situations.
`Vehicle:
`
`in
`
`(in garage,
`
`Location vehicle is parked at night
`driveway, on street); and
`location vehicle is parked at Work (high theft locations,
`etc.).
`These new and more precise actuarial classes are consid-
`ered to be better predictors of loss because they are based on
`actual use of the vehicle and the behaviors demonstrated by
`the driver. This will allow the consumers unprecedented
`control over the ulti.mate cost of their vehicle insurance.
`
`In accordance with the present invention, additional dis-
`counts and surcharges based on data provided by the insured
`vehicle will be available. Ijxamples of surcharges and dis-
`counts based on vehicle provided data include:
`Surcharges:
`Excessive hard braking situations occurring in high risk
`locations; and
`intermittent use of a safety device, such as seat belts.
`Discounts:
`
`Regular selection of lovv/high risk routes of travel;
`
`Page 000010
`
`Page 000010
`
`

`

`6,064,970
`
`5
`regular travel at low/high risk times;
`significant changes in driving behavior that results in a
`lower risk;
`vacation discount when the vehicle. is not used;
`regular use of safety devices; and
`unfailing observance of speed limits.
`There is some overlap between the use of actuarial classes
`and discounts and surcharges. Until data has been gathered
`and analyzed it is not possible to determine which vehicle
`provided data will be used to determine actuarial classes and
`which will be used for surcharges or discounts.
`One benefit obtained by use of the present invention is a
`system that will provide precise and timely information
`about the current operation of an insured motor vehicle that
`will enable an accurate determination of operating
`characteristics, including such features as miles driven, time
`of use and speed of the vehicle. This information can be used
`to establish actual usage based insurance charges, eliminat-
`ing rating errors that are prevalent in traditional systems and V
`will result in vehicle insurance charges that can be directly
`controlled by individual operators.
`It is another benefit of the subject invention that conven-
`tional motor vehicle electronics are easily supplemented by
`system components comprising a data recording, a naviga-
`tion system and a communications device. to extract selected
`insurance relevant data from the motor vehicle.
`
`10
`
`-
`
`25
`
`It is yet another object of the present invention to generate
`actuarial classes and operator profiles relative thereto based
`upon actual driving characteristics of the vehicle and driver,
`as represented by the monitored and recorded data elements
`for providing a more knowledgeable, enhanced insurance
`rating precision.
`The subject new insurance rating system retrospectively
`adjusts and prospectively sets premiums based on data
`derived from motor vehicle operational characteristics and
`driver behavior through the generation of new actuarial
`classes determined from such characteristics and behavior,
`which classes heretofore have been unknown in the insur-
`ance industry. The invention comprises an integrated system
`to extract. via multiple sensors, screen, aggregat.e and apply
`for insurance rating purposes, data generated by the actual
`operation of the specific vehicle and the insured u ser/driver.
`Other benefits and advantages of the subject new vehicle
`insurance cost determination process will become apparent
`to those skilled in the art upon a reading and understanding
`of the specification.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`The invention may take physical form in certain parts and
`steps and arrangements of parts and steps,
`the preferred
`embodiments of which will be described in detail in this
`
`specification and illustrated in the accompanying drawings
`which form a part hereof and wherein:
`FIG. 1 is a flowchart generally describing a data gathering
`process from a vehicle;
`FIG. 2 is a llowchart detailing the gathering and consoli-
`dating of appropriate information for determining a cost of
`insurance and the resulting insurance billing process;
`l"[(}. 3 is a suggestive perspective drawing of a vehicle
`including certain data element monitoring, recording and
`communicating devices;
`FIG. 4 is a block diagram of a vehicle on-board computer
`and recording system implementing the subject invention for
`selective communication with a central control center and a
`
`global positioning navigation system;
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`6
`FIG. 5 is a flowchart generally illustrating a method for
`acquiring and recording vehicle insurance related data; and
`FIG. 6 is a tabular illustration of various sources of
`
`insurance-related data, a necessary interface for acquiring
`the data and an exemplary sample rate therefor.
`
`DETAILED DESCRIPTION OF THE
`INVENTION
`
`Referring now to the drawings, wherein the showings are
`for purposes of illustrating the preferred embodiments of the
`invention only and not for purposes of limiting same, the
`FIGURES show an apparatus and method for monitoring,
`recording and communicating insurance related data for
`determination of an accurate cost of insurance based upon
`evidence relevant to the actual operation and in particular
`the relative safety of that operation. Although described with
`specific reference to automobiles,
`this invention is also
`applicable to other operator controlled motor vehicles nor-
`mally requiring insurance. Generally, a vehicle user is
`charged for insurance based upon statistical averages related
`to the safety of operation based upon the insurer’s experi-
`ence with other users who drive similar vehicles in a similar
`
`geographic area. The invention allows for the measure of the
`actual data while the motor vehicle is being driven. Such
`data measurement will allow the vehicle user to directly
`control his/her insurance. costs by operating the vehicle in a
`manner which hefshe will know will evidence superior
`safety of operation and a minimal risk of generation of an
`insurance claim. Examples of data which can be monitored
`and recorded include:
`
`C.
`
`low
`
`1. Actual miles driven;
`2. Types of roads driven on (high risk vs. low risk); and,
`3. Safe operation of the vehicle by the vehicle user
`through:
`A. speeds driven,
`ll. safety equipment used, such as seat belt and turn
`signals,
`time of clay driven (high congestion vs.
`congestion),
`D. rate of acceleration,
`E. rate of braking,
`ll. observation of traffic signs.
`With reference to l"l(}. 3, an exemplary motor vehicle is
`shown in which the necessary apparatus for implementing
`the subject invention is included. An on-board computer 300
`monitors and records various sensors and operator actions to
`acquire the desired data for determining a fair cost of
`insurance. Although not shown therein, a plurality of oper-
`ating sensors are associated with the motor vehicle to
`monitor a wide variety of raw data elements. Such data
`elements are communicated to the computer through a
`connections cable. which is operatively connected to the
`vehicle data bus 304 through an SAE-J 1978 connector, or
`OBD-II connector or other vehicle sensors 306. A driver
`
`input device 308 is also operatively connected to the com-
`puter 300 through connector 307 and cable 302. The com-
`puter is powered through the car battery 310 or a conven-
`tional generator system (not shown). Tracking of the vehicle
`for location identification can be implemented by the com-
`puter 300 through navigation signals obtained from a GPS
`(global positioning system) antenna or other locating system
`312. The communications link to a central control station is
`accomplished through the cellular telephone, radio, satellite
`or other wireless communication system 314.
`FIG. 4 provides the block diagram of the in-vehicle
`computer system. The computer 300 is comprised of four
`
`Page 000011
`
`Page 000011
`
`

`

`6,064,970
`
`7
`principal components, an on-board data storage device 402,
`an input/output subsystem 404 for communicating to a
`variety of external devices, a central processing unit and
`memory device 406 and a real time ope-rating kernel 408 for
`controlling the various processing steps of the computer
`300. The computer 300 essentially communicates with three
`on-board vehicle devices for acquisition of information
`representative of various actual vehicle operating character-
`istics. A driver input console 410 allows the driver to input
`data representative of a need for assistance or for satisfaction
`of various threshold factors which need to be satisfied before
`
`10
`
`the vehicle can be operated. The physical operation of the
`vehicle is monitored through various sensors 412 in opera-
`tive connection with the vehicle data bus, while additional
`sensors 414 not normally connected to the data bus can be
`in direct communication with the computer 300 as will
`hereinafter be more fully explained.
`The vehicle is linked to an operation control center 416 by
`a communications link 418, preferably comprising a con-
`ventional cellular telephone interconnection. A navigation ,
`sub-system 420 receives radio navigation signals from a
`GPS 422.
`
`The type of elements monitored and recorded by the
`subject invention comprise raw data elements, calculated
`data elements and derived data elements. These can be
`broken down as follows:
`Raw Data Elements:
`Power train sensors
`RPM,
`transmission setting (Park, Drive, Gear, Neutral),
`throttle position,
`engine coolant temperature,
`intake air temperature,
`barometric pressure;
`Electrical sensors
`
`brake light on,
`turn signal indicator,
`headlamps on,
`hazard lights on,
`back-up lights on,
`parking lights on,
`wipers on,
`doors locked,
`key in ignition,
`key in door lock,
`horn applied;
`Body sensors
`airbag deployment,
`ABS application,
`level of fuel in tank,
`brakes applied,
`radio station tuned in,
`seat belt on,
`door open,
`tail gate open,
`odometer reading,
`cruise control engaged,
`anti-theft disable;
`Other sensors
`
`vehicle speed,
`vehicle location,
`date,
`time,
`vehicle direction,
`IV] 18 data sources.
`Calculated Data Eleriieritsz
`
`rapid deceleration;
`
`rapid acceleration;
`vehicle in skid;
`wheels in spin;
`closing speed on vehicle. in front;
`closing speed of vehicle. in rear;
`closing speed of vehicle. to side (right or left);
`space to side of vehicle. occupied;
`space to rear of vehicle occupied;
`space to front of vehicle occupied;
`lateral acceleration;
`sudden rotation of vehicle;
`sudden loss of tire pressure;
`driver identification (through voice recognition or code or
`llngerprint recognition};
`distance travelled; and
`
`environmental hazard conditions (e.g. icing, etc.).
`Derived Data Elements:
`
`vehicle speed in excess of speed limit;
`observation of traffic signals and signs;
`road conditions;
`traffic conditions; and
`vehicle position.
`This list includes many, but not all, potential data elements.
`With particular reference. to FIG. 1, a flowchart generally
`illustrating the data gathering process of the subject inven-
`tion is illustrated. Such a process can be implemented with
`conventional computer programming in the real time oper-
`ating kernel 408 of the computer 300. The process is
`identified with initially a begin step 100 (key in ignition?)
`and a check of whether the vehicle is operating at step 102.
`If the vehicle is not operating a reverification occurs every
`two
`minutes as shown at step 104. It should be noted that
`the computer is continually powered by at least the vehicle
`battery 310 (Iil(l. 3), but it can be appreciated that during
`operation the generator (not shown) will supply the energy.
`If the vehicle is operating, then there is a step of recording
`sensor information 106. The recording comprises monitor-
`ing a plurality of raw data elements, calculated data elements
`and derived data elements as identified above. Each of these
`
`25
`
`30
`
`35
`
`40
`
`is representative of an operating state of the vehicle or an
`action of the operator. Select ones of the plurality of data
`elements are recorded when the ones are determined to have
`
`45
`
`an identified relationship to the safety standards. For
`example, vehicle speed in excess of a predetermined speed
`limit will need to be recorded but speeds below the limit
`need only be monitored and stored on a periodic basis. The
`recording may be made in combination with date, time and
`location. Other examples of data needed to be recorded are
`excessive rates of acceleration or frequent hard braking.
`The recording process would be practically implemented
`by monitoring and storing the data in a buffer for a selected
`period of time, e.g., thirty seconds. Periodically, such as
`every two minutes, the status of all monitored sensors for the
`data elements is written to a file which is stored in the
`
`50
`
`55
`
`vehicle data storage 402. The raw, calculated and derived
`data elements listed above comprise some of the data
`elements to be so stored.
`
`60
`
`Certain of the recorded sensor information may comprise
`a trigger event of which inquiry is identified at step 108.
`“Trigger events” are defined as a combination of sensor data
`requiring additional action or which may result in a sur-
`charge or discount during the insurance billing process.
`Certain trigger events may require immediate upload 110 to
`a central control 112 which will then be required to take
`
`Page 000012
`
`Page 000012
`
`

`

`6,064,970
`
`9
`appropriate action 114. For example, a trigger event would
`be rapid deceleration in combination with airbag deploy-
`ment indicating a collision, in which case the system could
`notify the central control of the vehicle location.
`Alternatively, if the operator were to trigger on an emer-
`gency light, similarly the system could notify the central
`control of the vehicle location indicating that an emergency
`is occurring. Alternatively, if the trigger information is not so
`serious as to require immediate upload (i.e., the inquiry is
`"‘NO"’) then, the trigger information is recorded, as at step
`116. For upload information, whatever response is taken by
`the central control is also recorded at step 118. The trigger
`information recording step 116 and the recording sensor
`information step 106 may impart recording of information in
`the on-board data storage device 402 or memory 406. The .
`event response information recording at step 118 will usu-
`ally occur in the central control station. Such response
`information could be the dispatch of an emergency vehicle,
`or the telephoning of police or an EMS unit.. The “NO”
`response to the trigger event inquiry 108 indicates that the .
`system remains in a wait loop with the recording sensor
`information step 106.
`Trigger events are divided into two groups: those