Yesterday i saw four accidents in Nicosia. Three of them had the markings of a "i was not looking because i was on the mobile phone". We have all seen those drivers who have their one hand on the phone while speeding in very narrow streets. Heck if we are honest we have all done it, at least once. Maybe it is your boss or it might be the school of your child - you feel like you do not have any other choice than to answer your phone even when driving.
The cost of such accidents is very large. Since they are resolved with the help of the police, the minimum cost of an accident is the cost to repair the cars as well as the wages of at least two policemen for two hours. If the insurance premium is 130 euro, then the cost of an accident, even if they are just bumps on both cars far exceeds it. There is also the cost of getting caught by a policeman talking on the phone while driving: 84 Euro and 3 points on your licence.
So what i am suggesting is for car insurance companies to provide free wireless earpieces to all its insured drivers but ask an additional excess in the event of a crash while on the phone. It is a win win scenario for all and particularly for the insurance companies. The drivers get something that they might not consider as necessary until after they crash; the police can use the saved man hours to resolve other issues; and the insurance companies get free promotion, smaller payouts and safer drivers.
Yet sadly i do not think this will take place - it is an obvious choice for an economist who looks at dynamic benefits for the insurance company, but anathema to an accountant who only sees the static costs of insurance companies rise.